Brief: Reliance Worldwide Corporation Sees FY23 Capital Expenditure To Be $60 Million To $70 Million

Reliance Worldwide

21/08/2022 22:52

Aug 22 (Reuters) - Reliance Worldwide Corporation Ltd
 RWC.AX :
    * SHORT-TERM OUTLOOK FOR RWC'S KEY MARKETS REMAINS
SATISFACTORY
FROM DEMAND PERSPECTIVE
    * EXPECTED THAT FUTURE DIVIDENDS WILL BE LESS THAN 20%
FRANKED
    * BACKLOG OF WORK IN RWC'S CORE REPAIR AND MAINTENANCE
MARKETS,
AMONG OTHERS EXPECTED TO SUPPORT VOLUMES IN SHORT TERM
    * PRICE INCREASES IN SECOND HALF OF FY22 WILL POSITIVELY
IMPACT
SALES REVENUE IN FY23 BY APPROXIMATELY 2%
    * CONTINUED COST INFLATION EXPECTED TO BE ONGOING CHALLENGE
IN
FY23 POTENTIALLY REQUIRING FURTHER PRICE ADJUSTMENTS
    * PRICE INCREASES MAY BE MARGIN DILUTIVE
    * SEES FY23 CAPITAL EXPENDITURE TO BE US$60 MILLION TO US$70
MILLION
    * FY23 NET INTEREST EXPENSE IS EXPECTED TO BE IN RANGE OF
US$23
MILLION TO US$27 MILLION
    * FURTHER COST REDUCTION INITIATIVES ARE EXPECTED TO DELIVER
US$8
MILLION IN COST SAVINGS IN FY23
    * NET SALES IN JULY WERE 19% AHEAD OF PCP
    * FY23 ADJUSTED EFFECTIVE TAX RATE EXPECTED TO BE IN RANGE
OF 22%
TO 25%

Source text for Eikon:  ID:nASX3gRLc7 
Further company coverage:  RWC.AX 

 ((Reuters.Briefs@thomsonreuters.com;))