NCB cuts forecast for Qualceram

NCB Stockbrokers has sharply cut its earnings forecast for Qualceram Shires, which issued a profits warning on Monday.

The broker said it was pencilling in earnings per share of 22.4 cents for 2004, a drop of 44%.

“Our forecast reduction reflects a number of pressures, mainly external, faced by the group in the second half of 2004,” it said yesterday.

“Looking to 2005, we expect challenging market conditions to prevail.

“Shires efficiency has been enhanced in recent years and the group’s Irish operation can be expected to deliver another strong performance.

“However, consolidation in the merchant sector, input costs pressures and the ready availability of imports will all keep margins under pressure.

“We have reduced our adjusted EPS forecast from 25.9 cent to 12 cent.”