Headwaters cuts 2008 profit guidance citing housing slump
SOUTH JORDAN, Utah—Headwaters Inc. on Tuesday cut its fiscal-year profit guidance, citing the ongoing slump in the U.S. housing market and especially bad winter weather in the first part of the year.
The news sent Headwaters' shares tumbling $2.93, or 20.6 percent, to $11.33 in morning trading. The stock has ranged from $8.80 to $22.46 over the past year.
Headwaters said it now expects to post a fiscal 2008 profit of 60 cents to 75 cents per share, down from its January prediction of 95 cents to $1.35 per share.
Analysts polled by Thomson Financial expect a profit of $1.01 per share for the year.
Headwaters, which provides products and services to the construction, coal-combustion and alternative energy markets, also said Wednesday that it swung to a fiscal second-quarter loss, partially as a result of the down housing market and bad weather.
"Although the building products environment continues to be difficult, we are improving the business to meet the challenge -- we expect to have a stronger business when the cycle turns," Kirk A. Benson, the company's chairman and chief executive, said in a statement.
"Our restructuring and cost containment activities are positioning the company to have improved future performance."
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