Dulux warns on dwelling construction

Expect more of this, from DLX today

Comments

  1. Hang on, let me get this straight…

    DLX have issued guidance (not a warning) which basically says that:
    65% of it’s revenue and and a greater share of its NPAT should be AOK on the back of retail and DIY markets.
    15% of it’s revenue and a smaller % of its NPAT from commercial and engineering markets should be solid thought the mix may change slightly,
    and 15% of it’s revenue and probably far less of its NPAT, due to its low margin nature, will see a decline in activity based on completions falling by a little under 6%. So that represents a potential revenue impact of 0.86% (assuming no change in share) and an even smaller impact on margin. In fact with the costs associated with selling to the trades, they may even make more money!
    I’ll just assume that I’m missing something at this stage.

  2. be interesting what will happen to building prices.
    its incredibly hard to get a builder at the moment for renos etc.
    also cost inflation is very high at the moment.

  3. New housing sales is the canary in the coal mine. It has collapsed over the last 6 months.
    This will feed into lower construction starts ->less construction jobs
    All we need is for there to be a reduction in Chinese tourist numbers/ Chinese international students seeing lower AirB&B related demand and this could unwind hard.

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