17 Aug 2017

Skellerup posts higher profit on commodity boost

2:57 pm on 17 August 2017

Industrial rubber goods manufacturer Skellerup has posted a higher full-year profit because of recovering commodity prices.

 Gumboots - Red bands

Skellerup gumboots. Photo: RNZ/Susan Murray

Its net profit in the year to June climbed 8 percent to $22.1 million, compared with $20.5m previously.

Revenue stayed relatively the same at $210.3m.

Chief executive David Mair said a stronger second-half boosted its agri and industrial divisions.

"Steady improvement in dairy commodity prices over the second-half of the past year resulted in farmers spending on deferred maintenance and increasing milk production," he said.

Mr Mair said that boosted earnings in New Zealand and its major overseas markets and he said that momentum would continue.

The United States is the company's biggest market with strong growth projections.

It also has a positive outlook for Europe, Asia, Australia and New Zealand.

Skellerup will pay a higher dividend of 9.5 cents per share to shareholders.