31 Mar 2014

Another profit downgrade for Methven

10:02 am on 31 March 2014

Methven is making another downgrade to its full-year profit after stock reduction programmes continued longed than expected.

In January the tap and showerware manufacturer said it had experienced softer trading in Australasia, partly because its customers had reduced their levels of Methven's inventory.

It said at the time its annual earnings would be flat to 10 percent higher than the previous year.

But now it says it expects its full-year profit after tax to be 5-10 percent down on the $5.2 million it reported last year.

Chief executive David Banfield says it's a customer-specific issue rather than anything else.

He says it's been a continuation of stock reduction programmes from key Australasian customers.

Mr Banfield says the stock reduction was expected to finish in January but it has continued through February and March and that has impacted the company's performance.