Nov 7 (Reuters) - Tyman Plc, a supplier of doors and windows, said it expected 2017 underlying profit to come in slightly below current analyst estimates due to higher unrecovered input costs and operational issues at its North American division.
Shares of Tyman were down more than 6 percent in morning trading on the London Stock Exchange.
Analysts were expecting 2017 underlying pretax profit to be in the range of 69.6 million pounds to 72.3 million pounds ($91.5 million - $95.1 million), according to company-compiled estimates.
Input costs have continued to increase at the company’s North American division, AmesburyTruth, in the second-half and the costs have not yet been fully recovered through price increases, given some operational issues, Canaccord Genuity analysts said in a note.
Canaccord analysts lowered their price target on Tyman stock, following the profit warning.
However, Tyman expects 2017 revenue and profit to be ahead of the previous year, helped by acquisitions of Italian rival Giesse and U.S.-based Bilco and favourable exchange rates.
Tyman reported an underlying pretax profit of 62.1 million pounds in 2016.
The company bought Giesse in March last year to expand its international business by entering Argentina, France, Greece, India, Portugal, Turkey and other markets.
Bilco’s acquisition in June was aimed at strengthening its commercial and residential business in North America.
Tyman expects to make “further progress” in 2018, with the market outlook in North America and Continental Europe “remaining positive”, it said on Tuesday.
$1 = 0.7605 pounds Reporting By Justin George Varghese in Bengaluru; Editing by Amrutha Gayathri