27 Aug 2009

Skellerup sales down

12:31 pm on 27 August 2009

Skellerup says the global recession has hit its industrial arm hard, with profit falling by a third.

The rubber company made a profit of $9.2 million in the year to the end of June, down 37% on the previous year.

Revenue rose 5% to $181 million, but managing director Donald Stewart says sales fell heavily in the second half of the year due to the severity of the slowdown in industrial activity.

He says Skellerup will not pay a dividend and it will look to raise $12.5 million to reduce debt further and strengthen its balance sheet.

Skellerup reduced net debt by 12% to 65 million last year.

Looking ahead: Skellerup says its agricultural division should hold up well, while the industrial sector has stabilised, though at lower levels of demand.

It picks a full year profit of $7.1 million for this financial year.