February 18, 2011 / 5:05 PM / 7 years ago

Superior Plus shares drop 11 pct on outlook, div cut

* Cuts adjusted cash flow per share outlook

* Posts third straight quarterly loss

* Q4 loss/shr C$0.31 vs EPS C$0.18 last year

* Cuts dividend by 26 pct to $0.10/shr a month

Feb 18 (Reuters) - Shares of Superior Plus Corp fell as much as 11 percent on Friday, a day after it cuts its 2011 cash flow outlook for the third time citing higher oil prices and a weak construction market.

The diversified business company said warmer-than-average temperatures and higher oil prices could hurt its energy segment, which contributes about 70 percent of total revenue.

The company also said a continued weakness in the U.S. residential and commercial construction markets would lead to increased competition resulting in lower sales margins.

The firm now expects 2011 adjusted cash flow from operations of $1.40-$1.75 per share. In May last year it had forecast $2.00-$2.20 per share and has since cut that outlook twice.

Superior, which provides procurement and distribution services for refined fuels, posted its third straight quarterly loss and cut its dividend by a fourth.

The Calgary, Alberta-based company’s shares, which have fallen about 13 percent in the past year, were trading down 6 percent at C$11.54 in afternoon trade on Friday on the Toronto Stock Exchange. They earlier touched a low of C$10.50. (Reporting by Savio D‘Souza; Additional reporting by Amruta Sabnis in Bangalore; Editing by Joyjeet Das)

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