14 Oct 2011

Shares in Methven slump after profit downgrade

6:10 am on 14 October 2011

Shares in the tapware and showerhead maker Methven slumped on Thursday after the firm issued a profit downgrade blaming the rapid decline in the Australian market.

The company revised its full year profit outlook to $6 - $8 million compared with $9 million forecast at its annual meeting in July. Its half year profit is expected to fall 25% to $3.2 million.

Chief executive Rick Fala says the company had predicted strong year-on-year growth in Australia but instead there's been a significant deterioration in building activity.

He says the fall in sales in New Zealand due to delays in the Christchurch rebuild were in line with budgeted expectations, while the UK arm has returned to profit.

Shares fell 13 cents to $1.22 on Thursday.