Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

Methven issues profit downgrade

NZPA

Friday 18th March 2011

Text too small?

Tapware maker Methven today issued a profit downgrade, citing a range of factors, including the Christchurch earthquake.

The company said when it released its interim profit that full-year net profit after tax should be in line with the previous year. It said today that it would be 10 to 15% down on last year.

The reasons were a potential bad debt in Australia of $700,000, combined with fourth quarter trading weakness in Australia and New Zealand exacerbated by the latest Christchurch earthquake.

These factors were expected to reduce earnings by around 10 to 15% on last year's net profit after tax of $7.8 million. In addition, net debt was now forecast to increase by 15% to 20% on the prior year.

Methven is New Zealand's longest established, largest supplier and leading designer of showerheads, faucets and hot water valves to home renovators, plumbers and the building industry. It traces its history back to 1886.

Methven shares were down 2 cents at $1.60 shortly after the announcement.

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.