Skellerup upgrades profit after 'excellent' second half

Skellerup Holdings is forecasting a net profit of at least $10 million. Photo / Simon Baker

Skellerup Holdings has issued a profit upgrade, citing improved trading in both its agricultural and industrial divisions in an "excellent" second half of its financial year.

Skellerup is now forecasting net profit after tax in the year to June 30 of between $10 million and $11 million.

When the company reported its interim profit in February it signalled net profit after tax for the year of up to about $8.5 million.

It attributed yesterday's upgrade to improved revenues and earnings across both the agri and industrial divisions during the second half and particularly during the fourth quarter.

"While there has been a positive impact for the agri division, in terms of increased demand for both consumable and some capital items, resulting from the recent rise in dairy commodity prices, the most significant increase in earnings in the second half has been in the industrial division due to strong demand for an increasing range of technical polymer products from new and existing customers in Australia, USA and Europe," the company said.

Chairman Sir Selwyn Cushing said some parts of the business, particularly for those products traded into non-consumable markets, were still in recessionary conditions but he said the company's second half was excellent.

Skellerup reported a net profit after tax of $3.3 million for the six months ended December 31, 2009, compared with $6.4 million for the half-year to December 2008.

- NZPA