Wellard shares hammered again

Shares in livestock exporter Wellard have been hammered for a second day in the wake of Monday’s profit downgrade.

The stock stretched its losses since the weekend to 20 per cent this morning, falling to a low of 84.5¢ before clawing back some ground to be 12.5¢ down at 85.5¢.

Wellard, which listed in only December, said on Monday it now expected full-year net profit to come in $42.5 million, down 8.4 per cent on its prospectus forecast.

It blamed the downgrade on the combination of a delay in commissioning of a new livestock carrier being built in China, a lower Australian dollar and previously-disclosed engine failures on two vessels earlier this year.

The group said none of the events was materially significant in its own right, but the cumulative impact represented a hit to its forecast.

On January 7, Wellard told investors the engine failures would not have a major affect on earnings.

The profit forecast excludes the cost of Wellard’s initial public offer and and associated expenses.