UK's Howden Joinery flags additional H2 freight costs, shares fall

(Reuters) - UK's Howden Joinery, a kitchen and joinery supplier, said on Thursday that it expects an additional cost of 5 million pounds ($6.4 million) in the second-half of the year due to higher freight expenses.

The FTSE 100 company's shares fell as much as 4.5% to 905 pence in morning trade, making it one of the top percentage losers on the blue-chip index.

Howden said it expected higher freight expenses to persist on rising container charges, leading to a further increase in costs.

Investec expects full-year profit before tax estimates to be 1%-2% lower due to the extra freight costs, it said in a note.

Howden, which through its UK division sells products to trade customers and local builders via 850 depots, reported half-year pre-tax profit of 112.3 million pounds compared with 111.9 million pounds a year earlier.

Fortunes of companies such as Howden are firmly tied to the health of the housing repair, maintenance and improvement (RMI) segment, which has been under some pressure as Britons continue to curb spending due to lingering economic concerns.

The company said that despite challenging market conditions, it is track to meet its 2024 outlook.

($1 = 0.7746 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza)