- Alesco lower 1H12 guidance only a month into the year
- Brokers cut forecasts, ratings downgraded
- Citi sees implications for other companies in similar markets
- Downgrades both GUD Holdings and GWA Group as well

By Chris Shaw

It was only a month ago Alesco Corporation ((ALS)) reported full year earnings for FY11 but trading conditions since the profit result have been bad enough to force management to quickly lower earnings guidance for FY12.

Revenue for the first half of FY12 is now expected to be 6% lower than for the corresponding period in FY11, while management's guidance suggests net profit for the half will be between 26-39% lower than for the same half last year. This implies a profit for the period of $6.2-$7.5 million.

JP Morgan notes the main reason for the downgrade to earnings guidance is a significant deterioration in the renovations market in Victoria in particular. This is impacting on earnings in the Functional and Decorative Products division in general and specifically for the Parbury kitchen laminates operations.