21 Aug 2020

Skellerup posts flat profit

11:29 am on 21 August 2020

Skellerup has recorded a flat profit as it was buffeted by the US-China trade dispute and impact of Covid-19.

garden hose

Photo: satura86/123RF

Net profit remained unchanged at $29.1 million for the year ended June, with revenue rising 2 percent on last year to $251.4 million.

The rubber goods manufacturer makes hoses, nozzles and gumboots for the rural sector, and parts for boats, cars and kitchen appliances.

Chief executive David Mair said the result underscored the importance of the dairy related products that Skellerup designs, manufactures and sells.

Skellerup reported solid sales growth in its agri division which compensated for struggles in its industrial business.

"The strength and resilience of our Agri business is seen in the record result. We increased sales of essential rubberware products into the USA, achieved operational gains despite the impact of Covid-19 restrictions at our key Wigram facility," Mair said.

"With minor exceptions, our businesses have continued to operate throughout the varying Covid-19 lockdowns across the world, reflecting the critical nature of many of our products. However, demand was adversely affected for some of our products used in infrastructure and oil and gas applications."

Mair said the company was in a secure position for continued growth and will continue to focus on delivering special products across infrastructure, roofing, flow control, healthcare, medical and marine applications.