BLD -3.48%: provided FY22 guidance for the first time today which disappointed. EBIT is expected to come in between $145-155m for continuing operations for the full year, down from $181m last year. The severe weather events across Australia’s east coast is expected to have a ~$23m impact on earnings with lower volumes. Higher coal and diesel prices are also biting. They currently have no hedging in place for their coal exposure, and they are only covered through to the end of April for diesel. Higher fuel prices will also cause more havoc on already constrained supply chains, likely further impacting the FY22 result.
MM is neutral BLD at best around $3.30, with a preference for CSR
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