In brief

• Ibstock, the largest brick manufacturer in the United Kingdom, sold 22% less in the third quarter than the company had expected, and cut production by one fifth.
• The company estimates full-year profit at about £45 million, versus £59 million expected by analysts.
• The company blames the government for delays in support for housebuilding.

Third-quarter sales fell sharply

Ibstock's sales in the period from July to September were 22% lower than the company's expectations (Sales slump at UK’s largest brickmaker as housebuilding downturn deepens – co.uk) (UK’s largest brickmaker hit by sales slump as housebuilding downturn deepens – The Guardian). In response, the company, based in Leicestershire, cut production by one fifth. In the UK brick market, sales volume fell 17% year on year in July and August, and weak demand persisted in September and October.

Profit forecast below expectations

Ibstock expects full-year profit to be clearly lower than its earlier forecasts. This is the second profit warning this year.

Accusations against the government

The company accuses the government of not introducing new support for housebuilding quickly enough. Chief Executive Joe Hudson said trading conditions deteriorated sharply in the third quarter, and the weakness also continued in October. He also explained that the production cut is meant to reduce inventories and match supply to demand, although it will weigh on results in the near term.