22 Aug 2011

Australia sales boosts Cavalier earnings

2:01 pm on 22 August 2011

Carpet maker Cavalier Corporation has lifted its full year earnings as improved sales in Australia offset declines in New Zealand.

The company made $18.2 million in the year to the end of June - 60% more than the previous year.

Stripping out a large one-off tax item, its underlying profit rose 4% to $17.3 million.

Revenue rose 4% to $229 million, with 10% growth in Australian sales offsetting a 10% fall in New Zealand sales.

Cavalier's managing director, Wayne Chung, says Cavalier has come through the year reasonably well, despite difficult market conditions.

Strong Australian sales and a good result from the wool-buying operation boosted earnings, but volumes fell in the wool scouring division, he says.

Mr Chung says there doesn't appear to be any immediate improvement to market conditions in New Zealand though there may be some benefit from Christchurch's rebuilding this financial year, so long as it gets underway soon.

Cavalier will pay an unchanged final dividend of 11 cents a share. The company's shares fell 5 cents to $3.50 during Monday morning trading.