RWC cuts guidance as fewer US pipes burst

Reliance Worldwide has downgraded its full-year earnings guidance following the lack of a winter freeze in the southern US.

The polar vortex that hit Chicago didn't get south enough to help RWC

The polar vortex that struck Chicago and the US Midwest didn't get far enough south to help RWC (AAP)

Reliance Worldwide has downgraded its full-year earnings guidance after the lack of a winter freeze in the southern US meant there were fewer burst pipes requiring replacement by the plumbing supply company's parts.

Reliance Worldwide expects earnings before interest, tax, depreciation and amortisation of between $260 million and $270 million, compared to the $280 million to $290 million is expected based on the assumption of what it calls a "modest freeze event".

The ASX-listed firm says some stockists are also reducing inventory, resulting in what it anticipates to be a one-off fall in sales.


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Source: AAP


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