19 Apr 2021

Strong sales lead Skellerup to lift profit forecast

11:31 am on 19 April 2021

Rubber goods manufacturer Skellerup has significantly increased its forecast profit on the back of strong sales.

Fixing plumbing system in bathroom close up view

Demand for plumbing products is among factors helping drive a better-than-expected performance by Skellerup. (file pic) Photo: 123RF

The company is expecting a full year profit of between $37 million and $39m, compared with last year's $29.1m.

"Sales of potable water products in the USA and demand for our flashing and plumbing products in all markets were robust in Q3," chief executive David Mair said.

"Sales of essential dairy consumable products were also better than expected during what is a normal seasonal low period."

He said the momentum was expected to continue into the fourth quarter when dairy farms would be ramping up maintenance, while demand for its marine-foam products was also growing.

"The global shortage of containers and shipping space along with international port congestion is impacting our business. We are focused on delivering the essential products we supply throughout the world," Mair said.

"Our manufacturing teams are focused on securing raw materials and running our operations as efficiently as possible."