Skellerup lifts full-year guidance; stock jumps

Skellerup says full-year profit ahead of estimates; shares jump about 8%

June 30 (BusinessWire) – Skellerup Holdings Ltd. said full-year profit will be ahead of market estimates because of a pickup in its Industrial division in the second half. The shares jumped almost 8% on the news.

Profit in the year ending June 30 will be $10 million to $11 million, including a one-time charge of $2.4 million, the company said in a statement today. That’s up from the $8.5 million forecast it gave with its first-half results in February.

The most significant increase in earnings in the second half was in its Industrial division, reflecting “strong demand for an increasing range of technical polymer products from new and existing customers in Australia, USA and Europe,” the company said.

Its Agri division has benefited from higher commodity prices, which gave customers more spending power. Skellerup’s products include milking equipment.

“While in some parts of the business, particularly for those products traded into non consumable markets, we are still in recessionary conditions, it has nevertheless been an excellent second half for Skellerup,” chairman Selwyn Cushing said.

The company will release its detailed full-year results on August 25.

Shares of the company climbed 5 cents to 68 cents today.

(BusinessWire)

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