Dorman Products falls on weak FY profit forecast

Dorman Products

25/07/2022 15:58

** Shares of auto parts maker Dorman Products Inc  DORM.O 
down ~4.3% at $111.75 in morning trading 
    ** DORM cut adjusted FY22 EPS profit forecast to a range of
$5.00 to $5.20, short of Wall Street estimates of $5.53,
according to Refinitiv data 
    ** Co had earlier expected FY profit on a per share basis
between $5.35 and $5.55
    ** DORM says while demand remained strong in Q2, it
navigated a difficult macro environment due to inflation, rising
interest rates, tight labor conditions and global supply chain
disruptions
    ** "This quarter, rising interest rates were a particular
challenge as they affected the cost of our customer accounts
receivable factoring programs and borrowings under our revolving
credit facility" - CEO Kevin Olsen
    ** Co posts Q2 adjusted profit of $1.29/share missing
estimates of $1.31/share 
    ** Including session's loss, shares down ~0.7% YTD 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))