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 0.6611 0.0000 0.00%
AUD 0.9370 0.0000 0.00%
EUR 0.5936 0.0000 0.00%
GBP 0.4562 0.0000 0.00%
HKD 5.1611 0.0000 0.00%
JPY 77.3440 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1157.7 17.750 2016-02-05T00:
Oil Brent 34.8 1.070 2016-02-05T00:
Oil Nymex 30.8 -0.810 2016-02-05T00:
Silver Index 14.8 -0.070 2016-02-05T00:

Indices

Symbol Open High Last %
NZX 50 6137.7 6153.8 6137.7 0.26%
NASDAQ 4491.5 4493.2 4509.6 -3.25%
DAX 9375.3 9469.7 9393.4 -1.14%
DJI 16418.0 16423.6 16416.6 -1.29%
FTSE 5898.8 5945.9 5898.8 -0.86%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16790.5 16893.1 17045.0 -1.32%