BUSINESSDESK: Cavalier Corp is closing a yarn spinning plant in Onehunga, where about 90 people are employed.
The company is hoping to limit job losses to 70 by redeploying staff to other jobs. The plant, which will close on July 26, is part of subsidiary Norman Ellison Carpets.
"This decision is about reducing over-capacity in the yarn spinning operations that support the group’s broadloom carpet manufacturing operations", the company said.
Norman Ellison will continue to make carpet at its Onehunga tufting plant.
The shares last traded at $1.54 and have declined 21% this year.
The carpet maker said in June that market conditions for its carpet businesses remain very soft on both sides of the Tasman, with volumes and margins under pressure.
It said then that underlying earnings for the current year ending June 30 are likely to be in the range of $3 to 5 million after tax.
If it booked all of the one-off costs from a restructuring plan the company would report a loss of $1 million to $3 million after tax.
But the company is signalling a tax-paid profit in the range of $10 million to $12 million in the 2013 year, when it plans to recommence dividend payments.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Craig expected to seek judge-only High Court review of jury's $1.27m damages decision
- ACC buys high, sells low as Intueri surprises investors with cascade of bad news
- Super Fund suspected window dressing at Milford
- Pumpkin Patch has three weeks to come up with options for bank
- Stonewood Homes liquidation becoming murkier
Most listened to
- Week in Review: a wrap of NBR Radio's top stories, interviews and analysis
- Craig-Williams trial: Otago University defamation specialist on 'Where to from here?"
- Testy exchange over Super Fund evidence
- 'It’s not as big as it was last year but it’s still the biggest game in town' – Paul Maher talks up TVNZ's audience
- Hydroworks CEO Andrew Rodwell on the company's prospects post-funding.