The Adbri Ltd (ASX: ABC) share price is having a terrible start to the week.
In early afternoon trade, the building materials company's shares are down 20% to $1.47.
This makes the Adbri share price the worst performer on the ASX 200 index by some distance.
Why is the Adbri share price crashing?
The Adbri share price has come crashing down to earth on Monday after the company revealed the surprise exit of its CEO and provided the market with a trading update.
In respect to the former, the company revealed that CEO and managing director, Nick Miller, will be leaving the role after the Adbri board determined that it is an appropriate time for a change in leadership.
Experienced senior executive, Mark Irwin, has been appointed as interim CEO and will start in the role tomorrow. He was previously held executive roles with other ASX 200 companies such as BHP Group Ltd (ASX: BHP) and OZ Minerals Limited (ASX: OZL).
Trading update
Also putting pressure on the Adbri share price today was the release of a disappointing trading update.
The release reveals that actions taken to address inflationary pressures have not offset external headwinds. As a result, the company's earnings have continued to be impacted by ongoing wet weather conditions affecting volume and cost, and an escalation of input and operational costs.
This means that company expects to record an underlying net profit after tax (excluding property and significant items) of $75 million to $85 million for FY 2022. This will be down 29% to 37% on FY 2021's underlying net profit after tax of $119.1 million.
Management revealed that it is implementing a number of immediate measures in response to the current operating conditions in the hope of delivering further additional cost reductions and operational efficiency improvements. It believes the appointment of Mark Irwin as interim CEO will accelerate Adbri's ability to deliver these initiatives in the current environment.
