Australia's Reliance Worldwide tumbles after Q1 earnings drop

Reliance Worldwide

25/10/2022 01:40

** Shares of plumbing products and services firm Reliance
Worldwide Corp  RWC.AX  slide as much as 14.8% to A$3.06, their
worst intraday loss since March 23, 2020
    ** RWC says Q1 adjusted earnings before interest and tax
(EBIT) fell 8% to $50.9 million 
    ** Jefferies says the trading update reflects drag from raw
materials' inflation
    ** Adjusted EBIT margin also down to 16.8% in Q1 vs 22.5% a
year ago 
    ** Jefferies also says sales slowed faster than expected -
RWC Q1 net sales up 23% at $303.1 million
    ** However, Jefferies expects Q2 sales, EBIT, margin to be
better
    ** Stock hits lowest level since Aug. 21, 2020
    ** As of last close, RWC down 42.7% YTD
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))