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Forterra PLC on Wednesday said that signs of market improvement it saw in May and June did not continue into the following two months. The Northampton, England-based building product manufacturer gave an update for the third quarter to September 30, noting that UK brick despatches in July and August were 28% lower annually and 16% below June, citing figures from the UK Department of Business & Trade. However, pricing across its products remained resilient overall, Forterra said. The company lowered its outlook for 2023, now expecting earnings before interest, tax, depreciation and amortisation to be below previous expectations. In July, it had guided an Ebitda with a more balanced first half to second half split, based on the assumption that the levels of improved demand in June would continue. ‘Looking ahead we expect to manage our operations on the assumption that 2024 demand will be at a similar level to 2023 and, accordingly we will look to align production output with this level of sales, thereby limiting further inventory growth,’ it added. In 2024, the company expects to benefit from a more stable energy cost environment and a stabilisation of customer inventory. ‘Growing political focus on increasing housing supply ahead of a general election reinforces the board’s confidence in the long-term industry fundamentals and the board remains confident that the group remains well-placed to benefit when market demand recovers,’ Forterra said. Forterra shares fell 7.4% to 133.20 pence each on Wednesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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