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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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