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

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news