ARB plunges after posting a 17.2% drop in HY profit
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More news: Shares in ARB slumped in morning trade after the company posted a 17.2% decline in half-year net profit driven by lower sales margin amid a weaker Australian dollar and lower factory overhead recoveries.
Shares fell 15.63% to $20.73 at 12:40pm AEDT.
ARB post 17.2% HY profit drop on lower sales margin
The news: ARB Corporation reported half-year net profit after tax of $42.2 million, 17.2% lower from a year ago, citing lower sales margin amid weaker Australian dollar and lower factory overhead recoveries.
The numbers: Sales revenue was 1% lower to $358 million, while total revenue came in at $365 million, a 1.2% decrease year-on-year.
Sales to the Australian aftermarket was 1.7% lower driven by ongoing shortage of accessory fitment resources.
The company declared a fully franked interim dividend of 34 cents per share, unchanged from the prior year.
The context: The company said the lower half-year profit was due to weakening of the Australian dollar against the Thai baht during the period, which increased the cost of its Thai-manufactured products. Lower inventory recoveries also contributed to the profit decline.
ARB expects conditions to improve in the second-half and to trade closer to the prior corresponding period, despite ongoing challenges.
The source: ASX
