GWA reviewing costs as earnings slump

Company News

GWA International Limited (ASX:GWA) has flagged a cost review as it revealed its quarterly trade earnings slumped 41 per cent in the first three months of the new financial year. 
 
The supplier of building fixtures and fittings believes lower demand, a strong Australian dollar and increasing import competition have impacted the first quarter result. 
 
GWA has also advised continuing weak conditions among new dwelling construction and renovation and low consumer confidence levels have also hit activity levels. 
 
The company’s building fixtures and fittings products are often sold as buildings approach completion. Given the time delay between dwelling approvals to commencements to completions GWA  does not see a recovery in sales in the current financial year. 
 
No full year guidance has been given but GWA plans to focus on reviewing its operating costs and focus on cash generation to improve and protect margins ahead of releasing a full year financial outlook in February 2013, when it delivers half year results.
 
GWA International booked a net profit of $39.7 million in the 2012 financial year. 

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