Australia's Reliance Worldwide drops most in nearly 2-1/2 yrs on weak forecast

Reliance Worldwide

22/08/2022 04:20

** Shares of plumbing products and services company Reliance
Worldwide Corporation Ltd  RWC.AX  fall as much as 10.1% to
A$4.06, on track to record the biggest drop since 23 March 2020
- if losses hold
    ** Co says continued cost inflation is expected to be an
ongoing challenge in FY23 potentially requiring further price
adjustments. 
    ** It forecasts price increases to offset inflation will be
margin dilutive but will not contribute to an increase in the
gross margin in FY23 (nFWN2ZW034)
    ** Expects FY23 capital expenditures of $60 million and $70
million
    ** Co posts FY reported net profit after tax of US$137.4
million, down 3% on prior corresponding period; however, FY net
sales were $1,172.2 million, up 17% on pcp 
    ** Shares of co hit lowest since July 19
    ** Shares of the co are down ~28.1% YTD as of last close 

($1 = 1.4486 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com))