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Pyxus International slides as the company decides to consolidate US processing operations; shares down ~22%

Published 11/08/2018, 08:44 AM
Updated 11/08/2018, 08:44 AM
© Reuters.  Pyxus International slides as the company decides to consolidate US processing operations; shares down ~22%
  • Pyxus International reports Q3 sales down 12% Y/Y to $395M, primarily due to a 10.8% decrease in volumes and stronger U.S. dollar versus certain currencies.
  • Due to lower sales, the company witnesses narrower margins; gross margin declines ~300bps to 12.5%; operating margin compresses 560bps to 3.2%, and adj. EBITDA margin is down 485bps to 6.6%
  • Amid various significant events, such as new/higher foreign tariffs on U.S. tobacco, declining export demand, the company has decided to consolidate all US processing operations to its facility in Wilson, NC, from FY19
  • (NYSE:PYX) shares declines 21.77% in pre-market trading
  • Previously: Pyxus International reports Q2 results (Nov. 8)
  • Now read: ICYMI: Andrew Left On 'The Art Of Short Selling' - Frauds, Fads, And Failures


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