Reece shares plunge 20% on weak annual profit

Shares of Australian plumbing equipment maker Reece Ltd (ASX:REH) tumbled 20% on Monday to AUD 11.01, Investing.com reported. The drop came as the ASX 200 index rose 0.4%.

Net profit after tax for the year to June 30 fell 24% to AUD 317 million ($205.3 million), missing expectations of AUD 325.1 million. Sales revenue slipped 1.4% to AUD 8.89 billion, while dividends dropped to 18.36 cents from 25.75 cents per share.

The company cited weaker demand in both the U.S. and Australia. U.S. profit declined 5% amid slowing housing construction and stronger competition. Reece expects the U.S. housing market to remain constrained for at least the next 12–18 months.