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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news