Skellerup reports profits down by 9 percent, seeks more capital

ERJ staff report (DS)

Christchurch, New Zealand -- Skellerup Holdings Limited saw a net profit after tax of NZ$9.7 million (Euro 4.63 million) for the 12 months to June 2009, a decline of just 8.9 percent compared to the previous year. Revenue from continuing operations was up by 5.2 percent to $180.9 million (euro 86.3 million) for the 12 months. This masked a 23.2 percent gain in the first half and a 11.4 percent decline in the second half.

The company said, "Our performance this year was affected by the broad-based slowdown in globalindustrial production, which reduced demand for a wide range of componentrysuch as automotive drive shaft couplings, construction products, pipegaskets, dairy pumps and general industrial components."

Skellerup said its Industrial Division results were further affected by intense de-stocking regimes implemented by many of its major customer's. The company said it is beginning to see greater month-on-month stability in demand trends, but cautioned that it is still too early to suggest that this market is heading into full recovery.

The company has approved a rights issue which should raise $21.5 million (euro 10.3 million) in new capital and suspended dividends in the short term.

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Press release from Skellerup