Dollar pinches bottom line

Capacity constraints and the high dollar have resulted in a half-year loss for Scott Technology.

The Dunedin-based manufacturer yesterday reported a net after-tax loss of $933,000 for the six months to February 28 compared with a $1.1 million profit for the same month a year earlier.

The loss was flagged at the company's annual meeting in December, when chairman Graeme Marsh said forward orders were sound, but the high exchange rate and fallout from the previous year's tough trading continued to impact.

Operating revenue declined to $12.3 million from $21.9 million a year earlier.

No dividend was declared.

Scott Technology's shares closed yesterday 10c down at $2.45.

- NZPA