(Reuters) -Bricks and concrete maker Ibstock on Friday said that weak demand in key construction markets hurt revenue across both its clay and concrete segments during the third quarter, and expects
Ibstock Projects Profit Decline Amid Ongoing UK Construction Challenges
(Reuters) -Bricks and concrete maker Ibstock warned on Friday that its annual profit would fall below expectations amid persistent weakness in UK construction, sending shares down as much as nearly 15% in early trading.
The profit warning underscores growing challenges for construction material suppliers in the UK, as builders pull back amid economic uncertainty. The sector is already grappling with weak activity in residential construction.
The Leicestershire-based company said its clay and concrete segment's revenues were hit in the third quarter, and sales volumes in the second half of the year will be in line with those clocked in the first half.
"With clear, long-term structural imperatives for residential construction growth, it is disappointing that additional near-term headwinds are impacting momentum in our markets in the latter part of the year", CEO Joe Hudson said in a statement.
It expects second-half core profit to be similar to the first half's 35.5 million pounds ($47.17 million), as cautious customers in an uncertain economy limit sales volumes and its ability to raise prices.
The firm had previously guided core profits to be in the range of 77 million pounds to 82 million pounds for 2025.
British construction activity shrank for a ninth straight month in September as firms held off on major investments ahead of November's budget, a business survey showed.
"It has been a tough year, with a sluggish new housing market at the root of the volume softness" Peel Hunt analysts said, adding that general budget uncertainty was not helping matters.
($1 = 0.7527 pounds)
(Reporting by Nithyashree R B and Raechel Thankam Job in Bengaluru; Editing by Harikrishnan Nair)
