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

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news