New Zealand's Steel & Tube Holdings plunges after full-year guidance

Steel & Tube Holdings

23/05/2018 24:30

** Steel distributor Steel & Tube Holdings Ltd  STU.NZ 
falls as much as 28.9 pct to NZ$1.42, its lowest since Jan. 26,
2001
    ** Says its expects to report a full-year earnings before
interest and tax (EBIT) loss of about NZ$38 mln ($26.37 mln),
compared with an EBIT gain of NZ$31.1 mln recorded a year
earlier  urn:newsml:reuters.com:*:nFWN1ST0PS  urn:newsml:reuters.com:*:nFWN1L30SH
    ** EBIT loss arising from review of business that revealed
non-trading costs and impairment charge of up to NZ$54 mln,
arising from write down of inventory values, among other factors
    ** Expects forecast earnings to result in a breach of one or
more covenants in the its senior debt facilities; management is
seeking a waiver from its banking partners
    ** About 119,939 shares have changed hands, compared with
the 30-day average of 55,082 shares 
    ** Stock posts its biggest ever intra-day percentage fall,
and is the biggest percentage loser on the NZX All Capital Index
 .NZCI 
    ** 3 of 4 analysts rate the stock as "hold", and 1 analyst
rates it as "sell"; their median PT is NZ$2.00 – Thomson Reuters
Eikon
($1 = 1.4409 New Zealand dollars)

 ((Reuters Messaging:
nicole.pinto.thomsonreuters.com@reuters.net))