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

 


Cavalier 1H profit soars; trims FY earnings guidance

Cavalier first-half profit soars 140% on cost cutting; trims annual earnings guidance

By Suze Metherell

Feb. 28 (BusinessDesk) - Cavalier Corp., the listed carpet-maker, more than doubled first-half profit as it clamped down on costs, though it cut its forecast annual earnings as it restructures its carpet tile unit and contends with a strong currency crimping export returns.

Net profit jumped to $3.4 million in the six months ended Dec. 31 from $1.4 million a year earlier, the Auckland-based company said in a statement. Sales increased 1 percent to $101.8 million as cost of sales declined 4.4 percent to $73 million.

Cavalier lowered its forecast for annual normalised earnings to between $6 million and $9 million, from previous guidance of $8 million to $10 million, and compared with normalised earnings of $6.6 million last financial year.

The carpet maker has cut costs, including closing operations, reducing brands and sacking staff, in the face of stiff competition from cheaper synthetic carpets and a sharp spike in the price of coarse wool, which has impacted margins.

Sales in New Zealand gained 9.7 percent to $45.4 million, while Australian revenue fell 6.4 percent to $52.9 million as returns were crimped by a rise in the New Zealand dollar. Australia makes up 52 percent of total revenue, down from 56 percent in 2012.

Cavalier shares fell 1.2 percent to $1.68 and have dropped 1.2 percent this year, lagging a 4.1 percent gain on the NZX All Index, a capital measure of all domestic stocks, over the same period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news