2 May 2013

Profit downgrade issued by Skellerup

7:14 pm on 2 May 2013

Skellerup Holdings has downgraded its annual profit forecast for the second time this year, citing drought, depressed European markets and the sluggish recovery in the United States.

The rubber goods and vacuum pump manufacturer now expects net profit for the year ending June will be $17 million.

In February, Skellerup was expecting an annual profit of $20 million compared with its earlier forecast of between $22 - $24 million.

Skellerup shares fell 15 cents, or more than 10%, to $1.33 cents on Thursday. They had already shed more than 10% since February.

Chief executive David Mair said sales of both dairy liners and rubber footwear in New Zealand were below expectations.

Demand from Skellerup's North American and European customers across both its agri and industrial divisions was also below expectations.