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A$2.28 0.0  1.3%

Last Trade - 7:10am

Basic Materials
Mid Cap
Market Cap £814.9m
Enterprise Value £1.10bn
Revenue £832.8m
Position in Universe 205th / 1835

BUZZ-Bitter lime: Analysts lament ADBRI's Alcoa contract loss, shares hit near 3-mth low

Mon 6th July, 2020 3:25am
(Updates) ** Brokerages raise concerns over ADBRI Ltd's ABC.AX loss of a lime supply contract with Alcoa, expects it to hit the company's profitability ** The construction firm on Friday said Alcoa of Australia Ltd has elected not to renew a lime supply contract expiring on June 2021 with its unit*:nL4N2EA0KP ** ABC shares drop as much as 8.1% to A$2.16, their lowest since April 14 ** Stock biggest loser in the Aussie benchmark .AXJO ** Citi says lime is typically a high fixed-cost business and estimates a A$45 million ($31.16 million) negative EBIT impact to ABC ** In our view, ADBRI will likely need to reprice lower at renewal to retain these volumes or risk losing the contract all together - Citi ** Jefferies calls contract loss a "major hit" to ABC and the credibility of its management team ** Analysts at Morgan Stanley expect a A$21 mln hit to FY21 EBIT from contract loss, call it "an incremental negative" for earnings ($1 = 1.4443 Australian dollars) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ADBRI trails Aussie benchmark YTD ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Shruti Sonal and Shashwat Awasthi in Bengaluru; Editing by Daniel Wallis) ((; Twitter: @shrutisonal26))
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