Waste management firm Shanks cuts forecast, shares sink

(Adds analyst comments; share movement)

Sept 26 (Reuters) - Waste management (NYSE: WM - news) company Shanks Group (Other OTC: SHMCF - news) Plc warned that full-year results would be 15 percent below its estimates as trading conditions worsened at its solid-waste business in Belgium, the Netherlands and Luxembourg.

Shanks shares fell as much as 18 percent to a year-low of 84.50 pence, recording their steepest intra-day fall since March 2010. The stock was among the top percentage losers on the London Stock Exchange (Other OTC: LDNXF - news) on Friday morning.

Shanks, one of the largest solid waste managers in the Netherlands, has been struggling to overcome the effects of a long-running slump in the Dutch construction market.

Shanks said it saw weak volumes particularly in the Netherlands construction and demolition sector. Its solid waste Benelux business generates over half of total revenue.

"We expect consensus EPS to fall 15 percent for 2015 and 10 percent for 2016," analysts at Liberum said in a note.

Shanks also said it expected to report a broadly flat year-on-year performance at its hazardous waste business, its second-biggest revenue contributor.

The company reported revenue of 636.4 million pounds in the year ended March 31, and an underlying pretax profit of 30.2 million pounds.

"Shanks has been one of the many waste businesses to have suffered in a very competitive industry," Investec Securities analyst John Lawson said while cutting his target price to 105 pence per share from 110 pence.

Wienerberger AG (Other OTC: WBRBY - news) , the world's biggest brickmaker, in August reported flat second-quarter sales and operating profit as declines in French and Dutch homebuilding proved steeper than expected.

Shares (Berlin: DI6.BE - news) in the company were down 15.8 percent at 86.50 pence at 0739 GMT. (1 US dollar = 0.6133 British pound) (Reporting by Aastha Agnihotri and Karen Rebelo in Bangalore; Editing by Gopakumar Warrier)