Skellerup projects 2017 profit to rise as much as 7%

Wednesday 26 October 2016 01:49 PM

Skellerup projects 2017 profit to rise as much as 7%, heightens focus on water and food safety

By Paul McBeth

Oct. 26 (BusinessDesk) - Skellerup Holdings expects annual profit to rise as much as 7 percent, recovering from last year's decline, as the industrial rubber goods maker puts greater emphasis on potable water applications and food safety.

The Auckland-based company forecasts net profit of between $20 million and $22 million in the year ending June 30, up from $20.5 million in 2016, it said in a statement ahead of today's annual meeting in Auckland.

"Our focus on products and systems for potable water applications and food safety provides a resilient business platform for Skellerup," chief executive David Mair said. "We expect these attributes to counter continued low international milk, iron ore and oil prices impacting demand, and the strength of the NZD which is reducing translated earnings from our overseas businesses."

Skellerup's 2016 earnings were hit by a downturn in demand from its agricultural business, which provides rubber products to the dairy industry, as weak milk prices prompted the postponement of some spending.

Chairman Selwyn Cushing said the company's new rubber factory in Christchurch's suburb of Wigram started operations and replaced Skellerup's old Woolston facility, which had been the cornerstone of the agri division.

Skellerup shares rose 0.7 percent to $1.42, having fallen 6.6 percent so far this year.

(BusinessDesk)

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