May 23, 2019 / 7:16 AM / a month ago

UPDATE 1-Inchcape sees half-year profit hit from supply constraints

(Adds details on results)

May 23 (Reuters) - Car dealership chain Inchcape Plc said on Thursday it expects its half-year profit to be hurt by supply constraint hurdles in Australia and Ethiopia.

Revenue rose 3% to 3.1 billion pounds ($126.25 million) in the four months ended April 30, boosted by growth in its retail and wholesale segments.

The company said retail growth in Russia was countered by weaker sales in the UK and Australia, with Britain’s auto market cooling and sales being hit by stricter emissions rules.

“The impact of temporary Subaru supply constraints in Australia offset the growth elsewhere in distribution and has had an associated margin impact,” the company said in a statement.

The company also said it was hit by currency-related supply constraints in Ethiopia.

Automakers and other manufacturers have pointed out that the toll of a no-deal Brexit could cause higher tariffs, disrupt supply chains and threaten jobs.

The company sold its Honda and Mitsubishi retail sites in Australia for 11 million pounds in cash, which it said would boost profits.

It also said it would buy back 100 million pounds in shares. ($1 = 0.7921 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Bernard Orr)

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