UK's SIG warns that first-half profits will fall as the construction slump continues

SIG, a British building material supplier, warned on Thursday of a "lower" first-half profit after announcing a 5% drop in like-for-like first-quarter sales. The company attributed the decline to unusually bad weather in Europe and a downturn in construction.

SIG said the Iran war had created more uncertainty about the timing and shape in which the market would recover across Europe. It was also too early to predict how the Iran War might affect its business.

The company has warned that the recent rise in oil and natural gas prices will increase input costs. It expects, however, to pass these on to its customers.

The company stated that "Demand on most markets is well below historical levels. European construction has been experiencing a prolonged cyclical low."

SIG has also appointed Simon 'Kesterton', former CFO at infrastructure & construction company Kier Group as its finance chief. He succeeds Ian Ashton who will?take on the role of finance boss for electrical component maker TT Electronics.

(source: Reuters)