Sharechat Logo

Viking rises despite dollar

Friday 15th December 2000

Text too small?
By Nick Stride

Viking Pacific, the "good company" rising from the ashes of Skellerup Group, reported an $8.4 million profit for the June year.

The result is short of the $10 million forecast in July but is a solid recovery from the $2.9 million loss of 1999, the company's first year.

Revenue rose 2.5% to $354 million with all businesses contributing.

Chairman Sir Selwyn Cushing said margins also rose and overheads fell. But the negative effect of the lower New Zealand dollar on importing businesses appeared to be more pronounced than the positive impact on exporters.

"It is virtually impossible to expect the end consumer to totally absorb price increases necessary to protect the margins of importers and as a result earnings will come under further pressure," Sir Selwyn said.

Shareholders' funds rose $9.8 million to $80.1 million. Net bank debt fell $1.3 million to $81.6 million.

Viking sold equipment hire business Projex in September and negotiations for the sale of Harding Electronics' licensing division are almost complete. The proceeds will be used to repay debt.

Sir Selwyn said Viking was close to selling several of its businesses. The sales would result in lower earnings in the short run but a stronger balance sheet.

The company owns 11 businesses in New Zealand, Australia and the US, including Masport, Paykel, Skellerup Industries, and Flomax International.

Chief executive Donald Stewart said Viking would continue looking for export sales growth and cost-reduction initiatives.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Rio Tinto decision following strategic review of Tiwai
Contact says smelter closure is ‘disappointing’
South Port (SPN) Statement on NZAS Tiwai Point Aluminium Smelter Closure
Rio Tinto announcement on Tiwai Aluminium Smelter
Me Today announces equity raising to accelerate growth
Scott Technology Trading Update; Rising to the COVID Challenge
New non-binding indicative offer received from apvg, shareholder meeting deferred
U.S. Added 4.8 Million Jobs in June as Reopened Businesses Rehired
Auditors have a duty to be alert to fraud
Strong sales recovery but uncertainty remains over economic outlook and potential second wave of COVID-19

IRG See IRG research reports