Cavalier warns on earnings again, shares fall 5.4%

Cavalier Corp 12-month price history (NZX.com)

Shares of Cavalier Corp [NZX: CAV] dropped after the carpet maker warned annual earnings will be lower than an already reduced forecast.

The carpet maker said normalised profit after tax will be between $5 million and $6 million in the 12 months ending June 30, 2014, down from the guidance of a minimum of $6 million previously advised to the market. The shares dropped 5.4 percent to $1.40.

Cavalier forecast annual tax-paid earnings of between $6 million and $9 million when it released it interim report in February. That forecast was down from the $8 million to $10 million range signalled at the annual meeting of shareholders in November.

The interim result was an improvement on last year but was down on expectations.

Cavalier did not provide a reason for the latest earnings downgrade but the New Zealand dollar is trading at a record on its trade-weighted index today and the exporter has previously cited the currency's strength as an issue.

The carpet tile business had a slow start to the year and that was anticipated to continue into the second half of the financial year and the wool scouring business had been performing poorly.

A restructuring of the business was not expected to provide additional benefits until much later in the year and into 2015.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6737 0.0033 0.49%
AUD 0.9336 0.0004 0.04%
EUR 0.6026 0.0013 0.22%
GBP 0.4599 0.0037 0.81%
HKD 5.2338 0.0289 0.56%
JPY 73.9550 0.1290 0.17%

Commods

Commodity Price Change Time
Gold Index 1223.8 -2.900 2016-05-25T00:
Oil Brent 50.2 0.270 2016-05-25T00:
Oil Nymex 49.6 0.910 2016-05-25T00:
Silver Index 16.3 0.010 2016-05-25T00:

Indices

Symbol Open High Last %
NZX 50 6915.7 6947.9 6908.0 0.58%
NASDAQ 4897.8 4905.1 4894.9 0.21%
DAX 10213.9 10286.2 10205.2 0.66%
DJI 17859.5 17888.7 17851.5 -0.07%
FTSE 6262.9 6281.7 6262.9 0.04%
HKSE 20373.5 20404.7 20368.0 0.14%
NI225 16927.7 16957.6 16757.3 0.09%
ASX 5372.5 5402.7 5372.5 0.29%