UK's Howden Joinery flags additional H2 freight costs, shares fall
Updates share move in paragraph 2, details on costs in paragraph 3, analyst comment in paragraph 4
July 25 (Reuters) -UK's HowdenJoinery HWDN.L, a kitchen and joinery supplier, said on Thursday that itexpects an additional cost of 5 million pounds ($6.4 million) in the second-halfof the year due to higher freight expenses.
TheFTSE 100 .FTSE company's sharesfell as much as 4.5% to 905 pence in morning trade, making it one ofthe top percentage losers on the blue-chip index.
Howden said it expected higher freight expenses topersist on rising container charges, leading to a further increase in costs.
Investec expects full-yearprofit before tax estimates to be 1%-2% lower dueto the extra freight costs, it said in a note.
Howden, which through its UK division sells products to trade customers and local builders via850 depots, reported half-year pre-tax profit of 112.3 million pounds compared with 111.9 million pounds a year earlier.
Fortunes of companies such as Howden are firmly tied to the health of the housing repair, maintenance and improvement (RMI) segment, which has been under some pressure as Britons continue to curb spending due to lingering economicconcerns.
The company said that despite challenging market conditions, it is trackto meet its 2024 outlook.
($1 = 0.7746 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza
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