Shanks warns on profit on slowdown in key solid waste markets
Sept 26 |
Sept 26 (Reuters) - British waste management firm Shanks Group Plc warned that profit for the year would fall short of analysts' expectations following a sharp slowdown in the United Kingdom and Dutch solid waste markets.
Falling prices for recyclable materials and stiffer competition have weighed on margins at the company's solid UK and Dutch solid waste businesses, Shanks said.
"The UK and Dutch Solid Waste businesses have been impacted by the northern European recession and record lows in construction output," the company said.
Analysts on average expect the company to report a pretax profit of 36 million pounds ($58.52 million) for the year ending March 31, 2013, according to Thomson Reuters I/B/E/S.
Of Shanks' four divisions, solid waste contributed 37 percent to its profit last year.
Shares in the company, which also operates in Belgium and Canada, closed at 90.25 pence on the London Stock Exchange on Tuesday. They have gained 19 percent over the past three months.
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