Cavalier says first-half profit plunges 59%, will miss full-year guidance
Cavalier Corp, the carpet maker that is attempting to build a monopoly in wool scouring, said first-half profit tumbled 59 percent, meaning the company is unlikely to meet its full-year guidance.
The shares dropped almost 9 percent on the news.Profit in the six months ended Dec. 31 fell to about $3.5 million, down from $8.5 million a year earlier, Cavalier said in a statement today. The company is still finalising its results ahead of their official release on Feb. 20.
“As a result of this disappointing result for the first half and a very slow start to the second half, it is now extremely unlikely that the company will finish the full year within the $8.5 million to $10.5 million tax-paid earnings guidance range provided to shareholders at the annual meeting last November,” it said.
The November guidance was based on a gradual improvement in market conditions this year after what had been “a very difficult first quarter with sales volume of broadloom carpet and carpet tiles down around 20%.”Instead, market conditions in Australia and New Zealand “have not improved.”
A large number of commercial projects were being delayed by “the uncertainties resulting from the European sovereign debt issues” while a subdued retail environment is “making it extremely difficult to maintain sales and to protect margins,” it said.
The shares dropped 20 cents to $2.10, the lowest since early January.
The stock has fallen 32 percent in the past six months.Cavalier is part of a group that has antitrust approval to acquire the wool scouring assets of Wool Services International as part of a plan to rationalise the nation’s total scouring capacity to enable the industry to compete with scours in China.
Comments from our readers
No comments yet
Add your comment:
Cavalier cuts FY earnings guidance, won't pay interim dividend
Cavalier names Paul Alston as chief financial officer
Cavalier turns to FY loss on cost to restructure unprofitable business
Cavalier ceases spinning at Onehunga with 70 job losses
Cavalier forecasts FY loss after charges, no dividend; shares tumble
Cavalier to change CEO, Chung stays on board
Court dismisses Godfrey Hirst bid to stop Cavalier Wool's scouring monopoly
Cavalier flags 50% profit slump in current financial year