INDEPENDENT NEWS

Cavalier warns on earnings again, shares fall 5.4%

Published: Thu 26 Jun 2014 04:42 PM
Cavalier warns on earnings again, shares fall 5.4%
By Pam Graham
June 26 (BusinessDesk) – Shares of Cavalier Corp dropped after the carpet maker warned annual earnings will be lower than an already reduced forecast.
The carpet maker said normalised profit after tax will be between $5 million and $6 million in the 12 months ending June 30, 2014, down from the guidance of a minimum of $6 million previously advised to the market. The shares dropped 5.4 percent to $1.40.
Cavalier forecast annual tax-paid earnings of between $6 million and $9 million when it released it interim report in February. That forecast was down from the $8 million to $10 million range signalled at the annual meeting of shareholders in November.
The interim result was an improvement on last year but was down on expectations.
Cavalier did not provide a reason for the latest earnings downgrade but the New Zealand dollar is trading at a record on its trade-weighted index today and the exporter has previously cited the currency’s strength as an issue.
The carpet tile business had a slow start to the year and that was anticipated to continue into the second half of the financial year and the wool scouring business had been performing poorly.
A restructuring of the business was not expected to provide additional benefits until much later in the year and into 2015.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Commission welcomes dismissal of NZME/Fairfax merger appeal
By: Commerce Commission
New Chief Technology Officer role created
By: New Zealand Government
Beef + Lamb New Zealand launches drought resources
By: NZ Beef and Lamb
Net Neutrality Failure in US Will Hurt All Internet Users
By: Internet NZ
Technology transforms consumer spending
By: Statistics New Zealand
Results Judgment: NZME merger appeal dismissed
By: New Zealand High Court
NZME, Fairfax reviewing rejected merger appeal
By: BusinessDesk
High Court rejects NZME/Fairfax NZ appeal
By: BusinessDesk
Minister silent while farmers wilt
By: New Zealand National Party
Westpac NZ Offers Relief to Farmers Affected by Drought
By: Westpac
Fronts and fine weather in the mix
By: MetService
2017 Worst Year on Record for Weather-Related Losses
By: Insurance Council
Net neutrality in New Zealand
By: Digitl
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media