- Hurricanes add to delay in moving production to Caribbean
- Revised full-year guidance could prove conservative: Goldman
The company whose initial public offering was London’s largest of 2016 saw its stock gain wiped out on Monday after saying supply shortages caused by hurricanes in the Caribbean weighed on third-quarter performance.
Convatec Group Plc shares dropped 21 percent to 219.5 pence at 12:10 p.m. in London, heading for the first close below the medical equipment maker’s initial public offer price of 225 pence.
The Reading, England-based company’s advanced wound-care division was unable to get supplies into its production channels in the Dominican Republic, causing knock-on disruption throughout the unit, Chief Executive Officer Paul Moraviec said after a trading update.
His comments come after Convatec warned in August of delays in relocating its production from Greensboro, North Carolina. Less progress than anticipated has since been made in reducing back-orders, with a consequent loss…