5 Sep 2008

Skellerup predicts further growth

8:19 am on 5 September 2008

Skellerup says it expects to deliver another year of growth after returning to profitability in the June year.

The company made a $14.6 million profit on the back of a one-off divestment gain and increased demand for its Agri-business rubber products. The previous year it had made a $2.4 million loss.

The rubber manufacturer restructured last year to focus on its core interests, and says it expects to make a profit of $13.5 million in 2009.

Skellerup managing director Donald Stewart says it is a good result considering the challenges it faces during a downturn, including the rising cost of raw materials, which increased by half in the June year.

Mr Stewart says the company wants to sell its Alucobond business, which he says does not fit its new streamlined model.