The carpet maker Cavalier says it doesn't expect sales to improve in New Zealand, as building activity stalls.
The company's profit rose 22% to $8.5 million in the six months to the end of December, compared with the same period the year before.
Carpet sales in Australia rose 19%, offsetting a 15% fall in New Zealand sales.
Australia now accounts for 60% of the group's total revenue, which
rose 3% to $117 million in the half-year.
Managing director Wayne Chung says that while the company will experience a lift in carpet sales in Christchurch, as earthquake-damaged buildings are repaired, the local outlook's grim.
He says Cavalier is fortunate in having a diverse business, across the Tasman and in the United States.
The company has a conditional agreement to buy a 75% interest in Radford Yarn Technologies, and Mr Chung says that, if accepted, it will allow Cavalier Bremworth to expand its range of up-market carpets. He says Radford Yarns would retain its own brand.
The company expects its full-year profit to be between $15.8 million and $17.5 million, in line with the previous year's earnings.
Cavalier recently lodged an application with the Commerce Commission to gain control of the wool scouring business of New Zealand Wool Services International.
