28 Jul 2009

Methven predicts up to 20% fall in profits

1:36 pm on 28 July 2009

Auckland-based tapware maker Methven is facing a tough year ahead with next year's profit forecast to fall by between 15% and 20% as some key export markets contract.

Methven earns nearly three quarters of its revenue overseas and expects declining profitability and market share in the United Kingdom as the recession continues to bite.

It hopes to trim losses in the United States, and expects profitable growth across the Tasman to continue, while the domestic market tightens.

Methven group chief executive Rick Fala says despite tough global conditions the company sees good opportunities in entering new markets in the Middle East and Asia.

Mr Fala says in the coming year the company expects to maintain dividend levels as well as reduce debt by a further 20%.