Agricultural and rubber goods maker Skellerup Holdings is picking a much improved second half after posting a $3.28 million net profit for the six months to December.
The result reflected a 48.8% drop on the previous corresponding period but an impro
Agricultural and rubber goods maker Skellerup Holdings is picking a much improved second half after posting a $3.28 million net profit for the six months to December.
The result reflected a 48.8% drop on the previous corresponding period but an improvement of 26.2% in the six months to June 2009.
Operating revenue of $85.6 million was down 13.5% on the same six month period a year ago, but up 4.6% on the June reporting period.
Chairman Sir Selwyn Cushing said he was confident that the second half of the current year would see a marked improvement in profitability.
"It is clear that the worst of the recession is over," he said.
The company projects full year earnings of approximately $8.5 million, compared to the $12.6 million reported in 2009.
At 11am Skellerup shares were up 4c at 52c.
The company will pay an interim dividend of 2c a share on March 31.
Sir Selwyn said the improvement in revenue and net profit on a sequential basis reflected cost reductions and the development of new revenue streams through the introduction of new products and markets.
“Whilst the recessionary conditions continue to impair business growth worldwide the above result confirms that the impact of the recession on our Group’s operations is diminishing.”
Skellerup's earnings for its industrial division fell 38% on the same period a year ago while agricultural earnings fell 25%.
Chief executive Donald Stewart said all business units in the Agri division had performed satisfactorily during the six months under review, with Agri’s consumable product range significantly outperforming those of a capital nature.
Industrial division businesses continued to be affected by weak demand in the United States and Europe for most of the first half.
”The immediate focus remains on ensuring that costs are contained, but not at the expense of our presence in an increasingly competitive global technical polymer marketplace,” Mr Stewart said.
“We are also actively pursuing the development and introduction of new products, and thus expanding revenue potential through access to new markets and customers.
"Successful product introductions during the latest half-year have been around driveshaft couplings, Quatro gumboots, innovative dairy liners and pipe gaskets into the USA.”
