5 Sep 2012

Profit down at wool exporter

1:21 pm on 5 September 2012

Wool Services International has reported a fall in annual profit, which is blames on a fall in wool prices and the high New Zealand dollar.

The wool export and scouring company made $2.3 million in the year to June, compared with $6.6 million in the previous year.

Revenue edged up 1% to $202 million, but prices fell sharply in the June quarter following a glut of wool being supplied on the market.

WSI said demand for carpets in Europe fell, which flowed through to textile producers in China.

China buys nearly half of the wool produced in New Zealand.

Demand in Australasia also declined, with higher wool prices prompting a switch to nylon carpets and carpet tiles.