BKW –6.91%: Released a trading update today prior to 1H25 results due 20th March, forewarning a post-tax impairment of $55 million to its Brickworks North America division.
Challenging conditions drove a -13% reduction to revenue vs. 1H24 with management citing strong competition in their retail segment and unusually unpredictable weather events leading to weaker revenue. Plant shutdowns drove manufacturing unit costs up resulting in lower earnings for the period, noting the plant shutdowns were well-flagged to the market.
President Trump continues to create uncertainty and the implications of tariffs on a recovery in U.S building and construction remain unclear. We are long and bullish James Hardie (JHX) in our Active Growth Portfolio though we continue to monitor the unfolding ‘Trumpcession’ closely.
MM is neutral toward BKW
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