13 Mar 2018
Lag in passing on higher input prices
Last week’s profit warning was driven by slower progress than management had expected in passing on higher raw material costs, primarily steel. We have cut our adjusted group PBT and EPS forecasts by 11% for FY18 and 17% for FY19. This reflects the lag between input price rises and sales to customers at higher product prices, along with a small negative from updated FX rates. We have also moved our recommendation for Renold from Buy to Hold, reducing our target price to 38p. Frustratingly we now ....
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Lag in passing on higher input prices
Renold plc (RNO:LON) | 38.0 0 0.0% | Mkt Cap: 85.8m
- Published:
13 Mar 2018 -
Author:
Jo Reedman -
Pages:
3
Last week’s profit warning was driven by slower progress than management had expected in passing on higher raw material costs, primarily steel. We have cut our adjusted group PBT and EPS forecasts by 11% for FY18 and 17% for FY19. This reflects the lag between input price rises and sales to customers at higher product prices, along with a small negative from updated FX rates. We have also moved our recommendation for Renold from Buy to Hold, reducing our target price to 38p. Frustratingly we now ....