Small diversified manufacturer, GUD Holdings has more than halved its final payout to shareholders as earnings slumped for the year to June. The maker of Ryco oil filters and air filters, Goss fuel pumps and hoses, and Wesfil and Narva parts said revenue edged up 1% to $438 million “despite second half COVID‐19 volume impacts”.
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.
As the broader Australian automotive aftermarket has recovered strongly after the easing of lockdown measures, Macquarie revises forecasts higher, although acknowledges a reinstatement of lockdown in Victoria emphasises the risks.
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.