Shares in auto-parts and water-pump maker GUD Holdings fell another 4% yesterday on top of Friday’s near 5% slide in the wake of what was a fairly weak 2018-19 result and an equally unconvincing outlook for the new financial year.
Investors punished diversified industrial, GUD yesterday, sending the shares down sharply (they were off over 12% at one stage) after it reported an interim result that fell a little short of expectations.
GUD, the Sydney based diversified manufacturer lost a CEO yesterday, gained a replacement and settled on a $20 million dollar expansion into the aftermarket for car parts. The company announced yesterday that the CEO of the past five years, Jonathan Ling had resigned as CEO and will be leaving the Company at the end of September 2018.
The company recently acquired Disc Brakes Australia and is adding new lines to its automotive division. Feedback from industry appears supportive of the momentum in the automotive business, UBS observes.
GUD’s sales and underlying earnings results fell short of the broker’s forecasts, while a number of one-offs led to a messy profit number. It was a familiar story of Auto performing well and Dexion posting another loss.
The interim financial result failed to meet expectations. JP Morgan also suggests the weaker AUD is going to make life tougher on the gross margin front in FY16 and FY17. Management did stick to its guidance for this year.