UK's SIG warns of first-half profit fall as construction slump drags on
Profit Warning and Market Challenges
First-Quarter Performance
April 30 (Reuters) - British building material supplier SIG warned of lower first-half profit after posting a 5% decline in first-quarter like-for-like sales on Thursday, as unusually poor weather across Europe and a cyclical downturn in construction weighed.
Geopolitical and Economic Uncertainties
Impact of Iran War
SIG also said that the Iran war has created additional uncertainty over the timing and shape of market recovery across Europe and that it was too early to predict the extent and nature of the potential impact on its business.
Rising Input Costs
Oil and Gas Price Increases
The company flagged that recent increases in oil and gas prices were driving additional input costs in the near term, although it expects to pass these through to customers without elaborating.
Demand Trends in Construction
"Demand in most markets remains well below historical levels, with European construction experiencing a protracted cyclical low," the company said in a statement.
Leadership Changes
SIG also appointed Simon Kesterton, former CFO of infrastructure and construction company Kier Group, as finance chief, succeeding Ian Ashton, who will take over as the finance boss of electrical component maker TT Electronics.
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Mrigank Dhaniwala)
