* Says July-Aug trading remained solid
* SIG shares up 1.2% in morning trade
* Kingfisher too flags supply chain disruptions
(Adds Kingfisher comment, share move, analyst comment)
By Aby Jose Koilparambil and Sachin Ravikumar
Sept 21 (Reuters) - Building materials supplier SIG
on Tuesday predicted its annual earnings would top expectations
but joined other British companies in warning that severe supply
constraints will likely persist for several months.
SIG, which sells roofing and insulation materials in Britain
and a handful of European countries, said trading was "solid"
during July-August despite the supply disruptions, which are
being worsened by a shortage of truck drivers.
The Sheffield-based company said it expected full-year
underlying operating profit above prior expectations, provided
current supply constraints do not worsen.
Shares in SIG were 1.6% higher at 50.65 pence by 0835 GMT on
the London Stock Exchange.
Analysts at Jefferies raised their estimates for SIG's 2021
profit to 32 million pounds ($43.8 million) from 25 million,
predicting stronger profit margins from France and Germany. SIG
had reported a loss of 43.2 million pounds in 2020.
Globally, businesses across industries have been hit by
supply bottlenecks at ports and warehouses and a raft of
companies in Britain have said the issues are leading to higher
costs and could weigh on earnings.
Home improvement retailer Kingfisher warned on
Tuesday its suppliers were challenged by high order levels, and
flagged supply issues at its building materials and outdoor
ranges businesses.
SIG posted an underlying operating profit of 13.6 million
pounds for the six months ended June 30, compared with a loss a
year earlier.
($1 = 0.7309 pounds)
(Reporting by Aby Jose Koilparambil and Sachin Ravikumar in
Bengaluru; editing by Uttaresh.V, Rashmi Aich and David Evans)
Kingfisher (KGF)
SIG (SHI)