Skellerup's focus on growing internationally expected to lift growth
Skellerup prioritises growth opportunities.
Rubber goods company Skellerup Holdings [NZX: SKL] expects annual profit to grow as much as 19% as its investment in the US market begins to deliver returns.
The Auckland-based firm expects profit of between $24-26 million in the year ending June 30, 2016, up from $21.9 million it reported in August. The company is holding its annual shareholders' meeting in Auckland today.
Skellerup has focused on growing international markets, with a particular emphasis on the US, to offset the decline in local sales for Skellerup's agri-division, which manufactures and distributes rubber goods and other related agricultural products.
A global glut of milk has seen a sharp drop in the price of dairy, New Zealand's largest export commodity, leaving farmers with less cash to spend on updating equipment.
"We have put a lot of effort into prioritising the growth opportunities available to us, and made significant investment in the people and structures we need to make the most of those opportunities," chief executive David Mair says. "That work is now starting to pay off."
Skellerup shares rose 0.7% to $1.46 and have gained 2.1% since the start of the year.
(BusinessDesk)
Suze Metherell
Wed, 28 Oct 2015
Wed, 28 Oct 2015
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Skellerup's focus on growing internationally expected to lift growth
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