Shareholders got off-roaded by ARB Corporation’s (ARB) profit waring this morning, which caused the stock to suffer its worst slide in four years.
The four-wheel drive accessory supplier said that first quarter sales were disappointing due to a sharp drop off in demand from auto manufacturers and rising costs.
The stock tumbled close to 9% on the news that the latest quarter sales were only up 1% over the same time last year while quarterly profits is expected to fall by as much as 10%.
The cut back in expenditure by mining companies in the wake of the uncertain operating environment is having a big impact on sales of four-wheel drive vehicles, but management is trying to offset this by pursuing export opportunities.
ARB declined to give a guidance as it said “uncertainty regarding future exchange rates is making forecasting demand in all markets difficult at present”.
ARB is part of the Uncapped 100. The stock was last trading down 8 cents, or 6.6%, at $11.39.