Synalloy Corporation SYNL cut FY2019 guidance from $30.037 million to $21.904 million. Synalloy cut its net income guidance from $9.331 million to $2.779 million.
The reason for the cut is due to average selling prices for welded stainless steel pipe being down approximately 15% from last year, which is pressuring contribution margins by about 9%.
“Prices [welded stainless steel pipe] are falling due to lower surcharges and what we believe to be a temporary surplus of inventory in the supply chain," the company said in a statement.
Synalloy shares were trading down 10.7% to $15.04 Wednesday afternoon. The stock has a 52-week range between $24.80 and $12.45.
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