Methven [NZX: MVN], the tap-maker and distributer, cut its full-year earnings guidance for a second time, saying soft trading conditions it flagged in January have continued for longer than expected.
The shares dropped 4.7 percent to $1.23 and have declined 8.5 percent this year. Net profit in the year ending March 31 is expected to be 5 percent to 10 percent down on a year earlier, the Auckland-based company said in a statement. In January it was expecting profit to rise as much as 10 percent from last year's $5.2 million.
"Methven has continued to experience the soft trading conditions reported in its January guidance," the company said. "Stock reduction programmes by key Australasian customers have continued longer than anticipated, impacting February and March sales. This has been compounded by the negative impact of currency translation."
Excluding one-time items, full-year profit may fall as much as 5 percent, it said. Net debt would be about $15 million at year end, down $2.2 million from a year earlier.
The Auckland-based company distributes across New Zealand and Australia as well as to the UK.