Wednesday 6th August 2008
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Operating profit after tax fell to NZ$1.48 million from NZ$7.6 million a year earlier, the company said in a statement. Revenue fell 80% to NZ$4.1 million.
"2008 will be a very difficult year given the dramatic slowdown in the New Zealand property market." Chairman Wong Hong Ren said. CDLI "has not been able to generate the same level of sales as seen in previous years."
Home-building approvals fell to a 22-year low in June as high mortgage rates and a slump in consumer confidence sapped demand for property. CDL Land New Zealand, the company's property arm, has six housing subdivision projects underway, with some 290 hectares of land to be developed, according to its website.
CDLI probably won't post a full-year loss, provided conditions don't deteriorate further, managing director BK Chiu said. Total assets rose to NZ$91 million in the first half from NZ$84 million a year earlier.
The drop in earnings dented the results of Millennium & Copthorne Hotels New Zealand Ltd., which owns 65% of CDL Investments. Revenue at the hotel and investments company fell 26% to NZ$65.5 million. Profit gained 2.6% to NZ$13.3 million.
Revenue from the company's New Zealand hotel operations, 18 owned or leased and operated hotels, fell to NZ$61.9 million from NZ$63.5 million.
Millennium shares were unchanged at 54 cents and have declined 24% this year. CDLI was unchanged at 29 cents and has fallen 29% this year.
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