21 Feb 2009

Carpet maker's profit falls

8:09 am on 21 February 2009

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.