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

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. 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