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

 


Skellerup doubles annual profit on quake payout

Skellerup doubles annual profit on Christchurch earthquake insurance payout

By Tina Morrison

Aug. 21 (BusinessDesk) - Skellerup Holdings, the industrial rubber goods maker, more than doubled annual profit following an insurance payout from the Canterbury earthquakes.

The Auckland-based company said profit rose to $41.1 million in the year ended June 30, from $19 million the year earlier. Profit in the latest year includes a $20.4 million gain from the insurance claim, some of which will be used to fund a future relocation, and a $1.6 million charge to settle a claim for faulty seals. Revenue rose 4 percent to $196.6 million.

Skellerup said excluding costs and income related to the Canterbury earthquake, annual profit increased 9 percent. Earnings before interest and tax at is Agri unit rose 9.8 percent to $21.7 million on an 11 percent gain in revenue to $80.2 million as it benefited from increased sales of dairy rubberware to farmers.

Returns from investment in its industrial unit were slower than forecast, with Ebit of $13..6 million on sales of $116.2 million, both flat on the year earlier.

In the Agri unit, "we have benefited from a buoyant New Zealand dairy sector leading to increased sales of liners and tubing, increased sales from an expanded footwear range plus a contribution from the acquisition of two small businesses to augment our animal hygiene product offering," chief executive David Mair said in a statement. The Agri unit expects to benefit from regulatory change in Europe which will see larger, more efficient dairy operations replace smaller ones, and from a move to strengthen food safety standards in China.

"These trends will help offset the impact of any drop in farm returns in New Zealand, which if sustained will inevitably lower demand for dairy shed consumables," he said.

The industrial business, which manufactures and distributes technical polymer products for construction, infrastructure, automotive, mining and other industrial customers, is investing in the US on optimism about future sales growth.

"Good progress was made in our industrial division albeit with improvements in returns accruing at a pace slower than what we would like," Mair said. "We are confident by investing now, earnings growth will follow, also aided by our competitive manufacturing bases in Vietnam and China."

Shares in Skellerup dropped 4.8 percent to $1.59, taking their decline this year to 3.5 percent. The stock is rated an average 'hold', according to analyst recommendations compiled by Reuters.

Skellerup said an increase in the New Zealand dollar against the Australian dollar over the past year had crimped earnings as more than a quarter of sales are earned in Australia. The kiwi has appreciated about 9.6 percent against the Aussie over the financial year.

The company will pay a final dividend of 5 cents a share on Oct. 16, taking the annual payout to 8.5 cents, from 8 cents a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news