Reliance Worldwide Corporation (ASX:RWC) is forecasting that its first half operating margins will be down for FY24.

Inventory reduction initiatives that started in FY23 will continue into the first half of FY24.

In the consolidated view, the company expects a dip in its revenues by a low single-digit percentage for FY24.

Capital expenditure is projected to range between $55 million and $60 million.

The target for the company is to stabilize operating margins for FY24 in line with FY23.

Expected sales in the Americas for FY24 are forecasted to fall by a low single-digit percentage compared to previous corresponding periods (PCP).

New home construction activity is expected to significantly decline in a few markets for FY24.

Operating cash flow conversion is anticipated to return to usual levels of around 90% for the fiscal year.

Net interest expense for FY24 is expected to reside within the range of $28 million to $31 million.

Overall, operation margins in Asia Pacific for FY24 are forecasted to be about one third less than FY23.

Reliance Worldwide Corporation is a company engaged in the design, manufacture and supply of high-quality brass, steel and plastic fittings and valves for use in the plumbing and heating sectors.