Reliance Worldwide shares suffer as US tariffs weigh on HY result
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More news: Shares in Reliance Worldwide dropped in morning trade after the plumbing supplies manufacturer posted a 35% drop in first-half profit.
Reliance shares were down 4.4% to $3.68 at 11:50am AEDT. The stock is now down 31.5% over the last 12 months.
UBS analyst Nathan Reilly said the first-half performance by the group's Americas division was "better than feared" but operations in Asia Pacific and Europe, the Middle East and Africa experienced worse-than-expected margin softness.
Reliance Worldwide HY profit drops 34.9% on US tariffs
The news: Reliance Worldwide reported a 34.9% decline in first-half profit driven by the impact of US tariffs and weaker demand in the US and UK.
The numbers: The plumbing supplies manufacturer reported first-half net profit after tax of USD43.7 million ($61.76 million), missing average forecasts of USD54.3 million, according to Visible Alpha.
Revenue fell 4.6% to USD645.4 million, below analysts' estimates of USD660.7 million.
Operating earnings were 22.2% lower to USD111.1 million, and cash generated from operations fell 19.2% to USD102.6 million.
The company declared an interim dividend of 4 US cents per share, up from 2.5 US cents a year prior.
The context: Reliance Worldwide CEO Heath Sharp attributed the profit decline to the impact of US tariffs and weak end markets.
He said the effect of tariffs is expected to ease in the second-half, but operating margins for the full-year FY26 are likely to be lower than in FY25.
The company also announced an on-market share buyback of USD15.3 million.
The source: ASX
