Higher raw material costs weigh on Geberit profit

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The maker of piping and bathroom ceramics reported sales rising 7.6 % to 854.8 million Swiss francs ($935.5 million)during the three months to the end of September.

But operating profit rose only 1.5% to 230.7 million francs as the costs for its raw materials surged 15.6% during the period, Geberit said.

Other construction companies have warned about higher raw material costs weighing on their profitability even as they see a resurgence in building activity after the pandemic shutdown last year.

Geberit expects prices for its raw materials to rise by around 3% in the fourth quarter compared with the third quarter. It also expects increases in energy prices to have a negative effect.

The company, whose results are seen as a proxy for the wider construction industry, uses metals like aluminium and zinc, plastics and ceramics in its products, which are used in new-build and refurbishment projects.

($1 = 0.9137 Swiss francs)