Carpet manufacturer Cavalier Corp has delivered an increased after-tax profit, up 22% to $8.5 million for the six months to December, largely underpinned by improved sales in Australia.
Cavalier's outlook for the rest of the year appears mixed, although a full-year result similar to a year ago is expected.
Guidance was given yesterday for after-tax profit of $15.8 million to $17.5 million, which is equivalent to the previous year's earnings of $16.6 million - plus or minus 5%, the company said in a statement.
Cavalier shares traded up 1.5% at $3.28 yesterday.
Australian-based sales, accounting for 60% of revenue, were up 19% on the previous year during the six months, while New Zealand sales were down 15%, highlighting the underlying differences between the two markets, the company said yesterday.
"We anticipate market conditions in New Zealand and Australia to be similar to those experienced in the first half of this financial year.
We do not see much upside in New Zealand, with the high level of unemployment and the lack of confidence unlikely to spur any meaningful growth in the economy, in household spending and in home refurbishments or new-builds.
"At the same time, we are not expecting to see any slowdown in building activity levels in Australia," the company said.
