Wednesday 26th October 2016 |
Text too small? |
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.co.nz
No comments yet
EBOS announces appointment of new Chief Financial Officer
AM Best affirms Tower Limited's A- (Excellent) FSR
MCK enters into conditional agreement for Whangarei land
April 26th Morning Report
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills