Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Cavalier cuts FY earnings guidance after slow start to year

Cavalier cuts FY earnings guidance after slow start, won’t pay interim dividend

Nov. 16 (BusinessDesk) - Cavalier, the carpet manufacturer, cut its full-year earnings guidance after a slow start in the first quarter and demand in the Australian market that didn’t recover as expected. The shares dropped 3.4 percent.

Normalised earnings are likely to be between $6 million and $10 million this financial year compared to previous guidance of a net profit of $10 million to $12 million, managing director Colin McKenzie told shareholders at their annual meeting.

It posted a net loss of $1.6 million last year, as period it described as the worst it had ever experienced, forcing the company to take $8.2 million of charges to restructure its business, closing a spinning plant and consolidating warehousing and distribution. Wool prices soared during the period.

“We have had a slow start to the new financial year which is disappointing given all the changes we have implemented and the expectation that the worst was finally behind us,” McKenzie said.

“We were predicting that the Australia market suffered a temporary setback, and that we would experience gradually improving conditions throughout the year – unfortunately there was no improvement during the first quarter.

Cavalier shares fell 6 cents to $1.70 on the NZX and have fallen 9.8 percent this year. The stock is rated ‘outperform’ based on the consensus of three recommendations compiled by Reuters, with a price target of $2.16.

Chairman Alan James told shareholders in his address that there would be no interim dividends paid by the company for now.

“We will be hoping to declare a final dividend, the quantum of which will depend on the full-year’s earnings,” he said.

Cavalier cut inventory by 14 percent to $62.9 million in the year ended June 30 and said today it is forecasting “further sizeable inventory and debt reduction” during the remainder of this financial year

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news