31 Oct 2013

Skellerup expects small profit lift

7:35 am on 31 October 2013

Rubberware and vacuum pumps maker Skellerup Holdings expects a small lift in net profit in the 12 months to June, but the forecast is still well below its record of 2012.

The company told shareholders at the annual meeting on Wednesday that it expects its 2014 net profit to be $21 million - $23 million, compared with $19 million this year.

However that was 23% below the 2012 result.

Skellerup Holdings managing director David Mair says despite the difficult global environment he is confident the company can build its presence in the US.

He says it will also benefit from the increased Fonterra payout to farmers and better distribution channels to customers.

Mr Mair says innovation is critical and the company's technical teams are crucial to its future.

He says Skellerup needs to find ways of bringing more technical people into the business, but unfortunately for a graduate engineer it is probably not the most attractive job prospect working for a rubber and silicon company.

Mr Mair says Skellerup has to create a business that is exciting, where staff can gain experience and at the same time help the company.