Carpet maker Cavalier has announced a fall in profit to $7.4 million in the six months to December due to lower demand for carpet for homes and intense competition.
Revenue rose 18% to $132 million, boosted by the income from last year's purchase of Norman Ellison carpets.
Once that factor is excluded, revenue fell 8%.
Cavalier says its debt level has increased significantly because of the timing of capital spending, and the cost of holding more stock due to the economic slowdown.
