Sumary of The Brickworks (ASX:BKW) share price has gained 7% in September. What’s next?:
- In September 2021 so far, the Brickworks Limited (ASX: BKW) share price has gone up by 7%.
- Brickworks’ latest operational update It has been a challenging operating environment for Brickworks in Australia over the last couple of months.
- On 9 August 2021, Brickworks announced that it was curtailing operations at a number of New South Wales and Queensland facilities.
- The company noted that brick dispatches abruptly reduced by 80% during the pause in construction activity across Sydney in late July.
- Management said the partial re-commencement of construction activity in August has resulted in some improvement, however brick sales are/were at only 50% of pre-lockdown levels, resulting in multiple storage yards reaching full capacity.
- Therefore, Brickworks decided to curtail production at two of its five brick kilns across the state, representing 30% of total production capacity.
- Operations at its precast facility in Wetherill Park was significantly reduced and it has removed one production shift at its roof tile plant in Brisbane that supplies the Sydney market.
- The Brickworks share price fell by 6% between the day of that announcement and 30 August 2021. An acquisition A week before that shutdown announcement, the company announced it was spending US$51.1 million to buy certain assets from Southfield Corporation, including the Illinois Brick Company (IBC).