BKW tumbled -6.4% on Thursday after the building supplies manufacturer reported that net income for the full year fell 54% to $394.7mn. Weighing on the stock was EBITDA in North America and Australia falling while margins were under pressure from inflationary pressures – same story, different stock & day! Cost pressures increased across the supply chain, with electricity costs up +28% for Austral bricks, it’s not just you and I. Also, for good measure, they see orders for building products softening while a fall in demand is expected moving forward.
- We saw nothing in BKW’s result to excite us into Christmas, although their property division is likely to fare better through an economic downturn, with strong rental increases helping to offset building products headwinds.
MM is neutral BKW around $24
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