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Cavalier Earnings Down 2 Pct In First Four Months

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Nov 13 NZPA - Carpet maker Cavalier Corporation says group earnings are down 2 percent in the first four months of its financial year, compared to last year.

But the next eight months would be much harder, managing director Wayne Chung told Cavalier's annual meeting in Auckland today.

In the year to June, the company increased earnings after tax 14 percent on the previous year to $17.9 million.

Today Mr Chung said dramatic falls in equity and real estate markets had eroded consumer confidence, and a decline in discretionary spending would inevitably hurt Cavalier's carpet business.

In the circumstances it was difficult to provide sensible earnings guidance for the current year.

The company pays dividends three times a year, with the first announced at the annual meeting.

Chairman Alan James said it was too early in the year to be contemplating a change in the size of the first interim dividend, despite the economic downturn.

As a result, the first interim dividend would be an unchanged fully imputed 3 cents per share, he said.

Cavalier shares were down 5c to $2.15 at lunchtime today.

NZPA WGT mjd nb

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