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

 


Skellerup shares sink 10% as 1H earnings fall, guidance cut

Skellerup shares sink 10% as 1H earnings fall, annual guidance cut

By Paul McBeth

Feb. 21 (BusinessDesk) - Shares in Skellerup Holdings sank 10 percent after the industrial rubber goods maker reported an 18 percent slump in first-half profit, missing expectations, and cut its annual earnings forecast.

Net profit dropped to $9.5 million, or 4.92 cents per share, in the six months ended Dec. 31 from $11.5 million, or 5.97 cents, a year earlier, the Auckland-based company said in a statement. Sales slid 7.7 percent to $94.9 million. That fell short of Forsyth Barr analyst John Cairns' forecast profit of $11.1 million on sales of $101.5 million.

The shares dropped 16 cents to $1.48. The stock is rated an average 'buy' based on three analyst recommendations compiled by Reuters, with a median target price of $1.85.

Skellerup's weaker performance was put down to weaker sales from its industrial unit, whose demand tapered off after an earlier flurry from North American oil and gas explorers. The company trimmed annual forecast net profit to $20 million from a range of between $22 million and $24 million, which was already down from last year's record $24.7 million.

"The 2013 financial year is shaping up to be a tougher year for the company than the previous one," chairman Selwyn Cushing said. "Our customers have been impacted by unpredictable weather patterns and a slowdown in activity, but as we have seen in the past, orders can quickly turn and we must be ready for this."

The board declared a fully-imputed dividend of 3 cents per share, payable on March 28, with a record date of March 15.

In October, Skellerup warned it was facing a tougher year in 2013 and was investing in organic growth opportunities, which included shifting a dairy manufacturing plant to a new Christchurch site.

Skellerup's agri division reported a 4.1 percent in sales to $35.5 million and a 7.8 percent fall in earnings before interest and tax to $8.3 million. The industrial unit showed the bigger decline, with a 9.9 percent fall in sales to $59.4 million and a 29 percent slide in ebit to $7.8 million.

Chief executive David Mair said the agri divison is slightly more predictable where decisions can't be put off, but industrial customers have greater discretion over their product demand.

The company is seeing good growth in developing Latin American markets for its industrial unit's goods, and is upbeat on the agri unit's fortune after Fonterra Cooperative Group lifted its forecast payout to farmers.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news