Scott Technology says high kiwi, slowing mining sector squeezing margins

Scott Technology, the industrial automation firm, says a global mining slowdown and a high New Zealand dollar are squeezing its margins in the short term.

The strong kiwi dollar has been an ongoing battle for the company that gets 37 percent of sales in North America and just 13 percent in its home market. Dunedin-based Scott cited the currency's strength when reporting a 16 percent drop in annual profit last year.

"Scott's Technology's revenue line remains solid and our order book is at good levels, providing us with a level of comfort over our forward work situation," the company said in a statement. "The company continues to review its operations with a view to mitigating the risk of further dollar appreciation."

Scott's shares fell 3.9 percent to $1.75 and are down about 4.2 percent this year.

BusinessDesk.co.nz

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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years