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

 


Scott Technology first-half profit drops 63%

Scott Technology first-half profit drops 63% as strong kiwi erodes export earnings

March 28 (BusinessDesk) - Scott Technology, the industrial automation firm, reported a 63 percent slump in first-half profit as a strong New Zealand dollar eroded the company’s export earnings and stiff competition pushed down margins.

Net profit dropped to $820,000, or 1.3 cents per share, in the six months ended Feb. 28, from $2.2 million, or 6.2 cents, a year earlier, the Dunedin-based company said in a statement. Revenue declined 5.7 percent to $25.3 million. It expensed $900,000 on research and development in the half.

“Underlying activity and sales across the entire business were at strong levels, but due to the effect of the high New Zealand dollar and the competition to win project work, margins were lower than historical levels,” the company said. “The directors are aware of the difficulties of the current economic environment, but are confident that the initiatives we have in place and have planned will deliver the required results for all stakeholders.”

Last month, Scott Technology said a global mining slowdown and a high New Zealand dollar were squeezing its margins in the short term, and it was reviewing its operations to mitigate the currency impact.

Scott Technology evaluated several potential acquisitions in the period, but rejected many which didn’t meet the company’s criteria, while others are still under consideration, it said.

“The company sees the need to grow in order to achieve scale within the business and to enable the ongoing development of our people,” it said.

The board declared an interim dividend of 2.5 cents per share, fully imputed, and payable on May 6.

The shares were unchanged at $1.55, and have dropped 18 percent this year.

Scott Technology’s standard equipment unit reported a 43 percent slump in revenue to $8.2 million, while segment profit more than halved to $1.67 million. Its automated equipment unit boosted sales 38 percent to $17.1 million, while segment profit soared to $855,000 from $27,000 a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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