Share on Facebook Share on Twitter Share on Reddit + - Dulux warns on dwelling construction By Houses and Holes in Australian Economyat 10:30 am on November 15, 2017 | 14 comments Expect more of this, from DLX today Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED INUS company tax cuts boost share buybacks, not investment or wagesBy Leith van Onselen While Prime MinisterThe great immigration conspiracyJudith Sloan sums it perfectly: ...whereLeith van Onselen debates migration numbers on Today ShowI appeared on the Today Show yesterday morning toAustralian wages are going precisely nowhereUBS has a nice deep dive into Aussie Comments EdMEMBER November 15, 2017 at 10:37 am this doesnt look like much of a warning. DLX is up 2% right now. Houses and HolesMEMBER November 15, 2017 at 10:43 am They buried it nicely but it’s there. Wiley Wolf November 15, 2017 at 11:30 am And around 20 PE. How about Flight centre reporting the other day 2% margin. that is razor edge. Soon to be another for the air crash investigation team Aaron November 15, 2017 at 11:31 am 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. Wiley Wolf November 15, 2017 at 12:32 pm What you are missing is that the retail diy market is lemming like headed over a cliff. and Imported paint can much better withstand a drop in price that can DLX and there is a heap of imported paint, especially in the above 4 litre market. myne November 15, 2017 at 1:12 pm Yes, but is it genuine leaded paint? I’m tired of this unleaded shit. It tastes funny. myne November 15, 2017 at 1:15 pm Yes, but is it genuine leaded paint? I’m tired of this unleaded stuff. It tastes funny. Wiley Wolf November 15, 2017 at 1:37 pm M, yr right, and antifoul without any copper in it. Absolutely useless myne November 15, 2017 at 4:57 pm WW: I don’t like it. EdMEMBER November 15, 2017 at 11:40 am 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. GramusMEMBER November 15, 2017 at 11:47 am That will change. jimboMEMBER November 15, 2017 at 12:22 pm I started saying that in 2002! Lucky I ignored myself a few times. GramusMEMBER November 15, 2017 at 11:46 am 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. alterbrainMEMBER November 15, 2017 at 4:31 pm Looking at AUD foreign paint is about to be less of a problem. However component costs might rise.