Scott Technology says margins hurt by high kiwi, weak mining
Scott Technology says high kiwi, slowing mining sector squeezing margins
Feb. 12 (BusinessDesk) – Scott Technology, the industrial automation firm, says a global mining slowdown and a high New Zealand dollar are squeezing its margins in the short term.
The strong kiwi dollar has been an ongoing battle for the company that gets 37 percent of sales in North America and just 13 percent in its home market. Dunedin-based Scott cited the currency’s strength when reporting a 16 percent drop in annual profit last year.
“Scott’s Technology’s revenue line remains solid and our order book is at good levels, providing us with a level of comfort over our forward work situation,” the company said in a statement. “The company continues to review its operations with a view to mitigating the risk of further dollar appreciation.”
Scott’s shares fell 3.9 percent to $1.75 and are down about 4.2 percent this year.