Cavalier profit outlook nosedive
Carpet maker advises six-monthly profit to December likely to be down 59%, announcement pushes shares down 13%.
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Carpet marker Cavalier Corporation (CAV) has flagged a significant drop in profits, advising its six-month results to December are expected to be down 59% on the previous years.
In a statement to the NZX the construction sector bellweather advised its six-monthly results, due to be released on February 20, were likely to show tax-paid profit of $3.5 million, down from last year's $8.5 million.
The company warned full-year profit guidance of between $8.5 million to $10.5 million given at its AGM in November was “extremely unlikely” to be realised.
The first quarter was reported to be “very difficult,” with sales of broadloom carpet and carpet tiles down 20% on the year prior.
Continued market difficulties were blamed on Europe’s sovereign debt crisis putting the brakes on major commercial construction projects and a weak retail and suburban sector.
In trading immediately after the announcement shares in the company plunged to $2, down 13% on yesterdays’ close.
Matt Nippert
Wed, 15 Feb 2012
Wed, 15 Feb 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Cavalier profit outlook nosedive
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