Guidance withdrawal update: Cleanaway, Cardno, GWA, Bapcor
24 March 2020,
Cleanaway Waste Management (ASX: CWY), bathroom and kitchen fixture distributor GWA Group (ASX: GWA) and engineering outfit Cardno (ASX: CDD) are among the major companies to withdraw earnings guidance today due to uncertain market conditions with Covid-19.
Cleanaway's CEO and managing director Vik Bansal highlighted his company's role in providing essential services to customers including municipal councils, government infrastructure, hospitals and more.
"We have not observed any decline in overall trading in any of our operating segments to date," Bansal said.
"However, as the COVID-19 situation evolves and uncertainty increases, we expect the SME part of our C&I waste volumes to be impacted.
"At this stage, we expect the demand for other services, such as health, municipal collections and related post-collections services to remain strong."
GWA actually noted trading to date for the second half was in line with expectations and better than the trend in the first half.
"GWA is well positioned to manage through these unprecedented events and we continue to take decisive action to proactively manage the business through this period," said CEO and managing director Tim Salt.
"Our primary focus is to ensure the health and safety of our employees. We have implemented business continuity plans internally and with our suppliers to minimise disruption to the business and our customers.
"We are in a strong supply position with ample inventory to supply all key products to customers."
Salt noted the company had a three-year multicurrency revolving facility of $210 million which matures in October 2022, as well as a $40 million revolving bilateral facility which matures in October 2020.
Cardno has found trading results over the past 8.5 months have been consistent with guidance previously provided, but as client sites, client staff and the company's own staff self-isolate or are quarantined around the world, there is potential for its project delivery schedule to be impacted in the short to medium term.
"Cardno is committed to supporting our people and our clients around the world as we collectively navigate our way through the challenges posed by COVID-19," said Cardno CEO and managing director Susan Reisbord.
"While we have our eyes very much focused on the long term, our immediate priority is to ensure the safety and well-being of our people, our clients and our stakeholders around the world.
"We are working with our clients to ensure that we can continue to deliver projects and solutions with as little disruption as possible."
Auto aftermarkets part provider Bapcor - known for brands including Autobarn, Midas and Opposite Lock - notes sales in its Burson trade segment have continued to be strong, and the overall business has performed in line with expectations.
But like so many others, the company has found it prudent to withdraw guidance, particularly as there have been business closures in New Zealand, Thailand and Australia.
"Bapcor's businesses provide a critical service for the community in ensuring that replacement and service parts are available for cars and trucks, including emergency services vehicles," said Bapcor chief executive officer Darryl Abotomey.
"Bapcor's team members are dedicated to ensuring they have available the parts and services that are necessary to keep the nation's vehicles, including cars, light and heavy duty trucks and emergency vehicles operating.
"To ensure the safety of our team members and our customers, additional levels of precautions are being undertaken. However the business is not immune from the impacts of the shut downs that are occurring and the drastic actions being undertaken to contain Covid-19."
Updated at 6pm AEDT on 24 March 2020.