UK's Somero Enterprises hits 2-1/2-yr low on bleak outlook

Somero Enterprises

20/06/2023 10:57

** Shares of concrete placing machinery manufacturer Somero
Enterprises  SOM.L  fall as much as 14.5% to 282p, their lowest
level since November 2020
    ** Stock on track for biggest one-day pct drop since March
2020, if losses hold
    ** Co sees annual core profit of about $36 mln compared with
market consensus of $42.8 mln; forecasts revenue of $120 mln vs
analysts' expectations of $132.1 mln
    ** Cites staggered growth in U.S., affected by delay in
non-residential construction projects due to tightened bank
lending standards and construction permitting delays
    ** Says H1 2023 revenue will range between 15% and 20%,
below the $68.5 mln revenue reported in H1 2022
    ** SOM will also cut 10% of operational workforce; average
number of employees in 2022 was 216, according to annual report 
    ** As of last close, stock down 12% YTD


    
   

 (Reporting by Hani Kollathodi in Bengaluru)
 ((Hani.Kollathodi@thomsonreuters.com;))