Orora shares plunge as UBS forecasts 7% downgrade to consensus
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More news: Orora was one of the worst performing ASX 200 companies after morning trade as the bottles and cans manufacturer's first-half result missed forecasts.
Orora shares dropped 4.3% to $2.24 by 12:15pm AEDT, extending losses of around 20% over the last 12 months.
First-half revenue and earnings before interest and tax fell short of market estimates by 4% and 5% respectively, according to Visible Alpha data.
UBS said Orora's outlook commentary implies a 7% downgrade to full-year EBIT consensus forecasts.
Orora profit slides after impairment on Gawler glass facility
The news: Orora's first-half statutory profit plunged after the packaging group downsized its glass facility in Gawler, South Australia, in response to recent softness in commercial wine and beer volumes in Australia.
The numbers: Orora reported statutory net profit after tax of $200,000 for the six months to December, down 99% compared to the prior corresponding period.
This reflected an $83.7 million pre-tax impairment on its Gawler site. Underlying NPAT lifted 1.2% year on year to $58.8 million, with total revenue up 65.7% to $1.03 billion.
Orora declared an interim dividend of 5 cents per share, unchanged from last year.
The context: The glass bottles and cans manufacturer said the period saw the completion of its portfolio simplification to lower costs and offset "challenging market conditions".
Orora confirmed the sale of its Orora Packaging Solutions in January and its Closures businesses last month. The company will now focus on the global beverage industry through its glass and cans offerings.
Managing director and chief executive Brian Lowe said that the impairment on its Gawler facility was a result of reducing the site from three furnaces to two, with existing production volumes redirected to the company's manufacturing site in UAE.
The source: ASX announcement
