Tougher conditions in offshore markets have affected Skellerup Holding's second-half trading.
Chairman Sir Selwyn Cushing said in a statement to NZX that the company's industrial division products in Europe and the United States particularly had now deteriorated to a significantly greater degree than anticipated when earnings guidance was provided in February.
"As a consequence of these market changes, the guidance provided then as to the full-year trading result is no longer appropriate."
The overall result for the year ended June 30 was now forecast to be $8 million to $9 million after tax compared with $11 million in the February forecast.
Sir Selwyn said it was disappointing to announce a reduction in projected profit for the current year. However, the agricultural division was continuing to trade in line with the board's expectations.
The board was still confident the primary focus for growth should continue to be in the manufacture, marketing and distribution of technical polymer products globally for both the industrial and agricultural divisions.
ABN Amro Craigs broker Peter McIntyre said Skellerup's difficulties were similar to those experienced by fellow NZX-listed Nuplex Industries.
"I would not be surprised if further downgrades are instigated and dividend reductions follow," he said.
Skellerup said in a release to the exchange that the payment of the previously-announced interim dividend of 2.5c per share was confirmed.
