Why have Ansell (ANN) shares fallen?
ANN -14.34%: the healthcare and industrials supplies company was smacked to 18+ month lows today after it flagged a number of issues leading into the half year result. Sales for the half are expected to jump ~7% to $US1,009m however a big jump in costs will weigh on margins with profit to take a ~25% hit. They noted supply chain disruptions, forced manufacturing shutdowns due to COVID outbreaks and higher input costs have weighed on the half while also seeing a slowdown in demand as customers look to draw down inventory. News US customs have also held a shipment of medical gloves following allegations of forced labour at a third party production facility also shocked the market. Ansell is working to clear the allegations however it’s another pain point in a tough half. A knife was taken to full year earnings guidance given the pressures facing the business, revised 27% lower to $US1.25-1.45.