Skellerup to focus on rubber: move will affect profits, jobs

Christchurch, New Zealand - Skellerup Holdings Ltd has decided to specialise as a global technical polymers (mostly rubber) company, according to a corporate statement. This emphasis, said the company, will mean lower profits in the short term, and job losses as the company sells off non-core businesses.

Skellerup chairman Keith Smith said "We understand the technical rubber industry well. It is the heart of Skellerup today.The market is large internationally, but quite fragmented, and thus Skellerup expects to continue to grow by acquisition to build a stronger presence in the larger, higher growth and more valuable markets".

Smith said the NZ dollar is strong against other currencies, so the comapny will accelerate its policy of outsourcing industrial product manufacture, and this is likely to mean job losses at Skellerup's Christchurch factory.

Skellerup said it is now expecting to report a reduced Net Profit after Tax (NPAT) before abnormals of approx NZ$9.0m (€5.0 million) for the year ending 30 June 2007 (2006: $13.4m). However, exceptional charges of NZ$16 million for restructuring will push the company into a NZ$7 million loss for the year ended June 2007.

The changes adopted by the Board arise from an extensive review of the shape of the business. They will result in a more focused operating portfolio that better reflects the group's core competencies, the shift in international markets and industrial trends," Smith said. "We are confident that these changes will reposition the group for more significant growth opportunities in the future".

Skellerup Holdings Ltd is a New Zealand based marketer, manufacturer and distributor of specialised rubber and foam products, footwear and vacuum pumps to agricultural and industrial customers worldwide. The Group is listed on New Zealand Exchange under the trading code SKL.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from Skellerup

Skellerup predict loss after restructuring NZ Herald (New Zealand)

Job losses loom at Skellerup National Business Review (New Zealand)