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Skellerup cuts earnings guidance again

NZ NewswireNZ Newswire 28/04/2016 Paul McBeth

Skellerup Holdings has cut its annual earnings guidance for a second time, projecting a lower profit than 2015 on weak demand from the rubber goods maker's customers.

The Auckland-based company expects to report profit of $20 million to $21 million in the 12 months ending June 30, down from a previous forecast of $23m, which was already a downgrade.

Skellerup posted a profit of $21.9m in the 2015 financial year.

Chief executive David Mair said lower international milk prices was affecting both local and foreign customers with farmers reducing their spending and putting off investment.

Cheap oil and gas had also led to a reduction in the number of vacuum pump systems sold in North America.

Skellerup had already been downbeat on the outlook for its agricultural and oil and gas sales when reporting its first half result in February, with customers for its US water systems propping up its industrial business.

The shares last traded at $1.39, and have declined 8 per cent this year.

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