Adbri hits over 13-yr low on CEO resignation, weak outlook

Adbri

17/10/2022 04:03

(Updates with citi's comments, latest share moves)
    ** Shares of Adbri Ltd  ABC.AX  tank as much as 21.2% to
A$1.450, their lowest since March 12, 2009
    ** The construction materials maker says Nick Miller will
resign as CEO and managing director due to COVID-19 challenges,
to be replaced by Mark Irwin in an interim role 
    ** ABC sees underlying NPAT (excluding property and
significant items) of A$75 mln ($46.68 mln) to A$85 mln for FY
    ** Says extreme rainfall events and inflationary headwinds,
particularly energy and diesel costs, have continued to impact
margins
    ** Citi says despite pricing actions taken to address
inflationary pressures, co has not offset external headwinds
    ** Further says earnings appear to be impacted by ongoing
wet weather conditions and an escalation of input and
operational costs
    ** Brokerage expects the outlook for infrastructure and
apartments in particular to weaken further, which may make it
more difficult for co to recover price going forward
    ** ABC top pct loser in the benchmark index  .AXJO 
    ** Stock posts its biggest intraday pct fall since 3 July,
2020
    ** More than 9.3 mln shares change hands, more than
quadruple the 30-day average volume of ~1.2 mln shares
    ** Stock down 34.8% this year, as of last close
    ($1 = 1.6067 Australian dollars)
 (Reporting by Poonam Behura and Echha Jain in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;
Echha.Jain@thomsonreuters.com))