Jul 8 2020
Industrials
Recent Research
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DS Smith
Cutting forecasts on weaker US and higher costs; clarity required on capital allocation
DS Smith’s recent results were negatively impacted by the poor performance of its recent acquisitions. This is not surprising given the deterioration in market conditions since the...
European building materials
Counting the cost
From the April lows, Q2 construction activity has rebounded quicker than we first thought. That suggests the potential to surprise positively, especially for companies with large...
HeidelbergCement AG
Review leads to €3.4bn impairment
HeidelbergCement has impaired c.11% of its capital employed, citing Brexit and the impact of the COVID-19 pandemic. The vast bulk of the write-down relates to two acquisitions completed...
Barratt Developments plc
Positive on volume recovery; customer demand robust since reopen
Barratt Developments is painting a reasonable picture of recovery in volumes following the lockdown period. Sites are already back at 75% run rate and this is expected to improve...
Geberit
COVID impact apparent in Q2 sales declines
Geberit’s first-half sales update looks moderately better than we expected. While activity weakened significantly in many Southern European markets, the performance in Germany, Nordics...
DS Smith
FY results miss; dividend cancelled, cautious outlook
DS Smith’s results reflect the on-going impact of COVID and its historic over-payment for acquisitions. While the volume environment is less negative than we expected, higher OCC costs...
CRH
US House passes a $1.5trn Infrastructure Bill
The US House of Representatives (HOR) last night passed a $1.5tn Infrastructure Bill, which includes a five-year, $494bn highway package to replace the FAST Act. The bill was expected...
Forterra plc
Equity placing completed
Forterra has completed a proposed equity placing to raise gross proceeds of c.£55m. The placing was completed at a discount of 5.6% to the previous night’s close and will increase the...
Breedon Group
A new deal – and the Cemex deal
The UK Prime Minister yesterday (June 30th) outlined his “New Deal”, which aims to accelerate investment in infrastructure and housing. The £5bn plan includes c.£1bn for ‘shovel-ready’...
Redrow plc
Big miss reported for 2020 despite good sales rates
The timing of year-end combined with a heavy weighting towards H2 completions has meant the pandemic effect on volumes was more than 15% worse than our expectations. While the sales...
