Operating profit was down 4% at $36.8million, compared with $38.4million in the previous corresponding period.
The reported profit was down 6% at $20.5million, compared with $21.9million in the pcp.
A final tax-paid dividend of 5.5 cents per share was declared, bringing the total dividend to 9cps.
Agribusiness earnings before interest and tax (ebit) fell 15% because of dairy commodity pressure and Skellerup had reduced prices and margins to maintain sales levels, he said.
"Dairy liner sales remain buoyant given it’s an essential consumable — albeit demand for dairy tubing dropped away as spending was able to be deferred."
In light of the tough agribusiness trading conditions, it was pleasing to see the division’s earnings held up as expected, Mr Foster said.
The industrial division was able to provide a shield from the falling oil and gas prices to post a 6% increase in sales.
Skellerup cited the development of new opportunities as the driver of growth.
Skellerup chief executive David Mair said using the expertise built up in one market to develop new opportunities elsewhere had been a big driver of the growth in earnings posted by the industrial division.
In Australia, Deks had been able to build on its reputation and its relationships with distributors to move beyond plumbing and roofing products into water and wastewater infrastructure supplies.
Skellerup’s development of its new flagship dairy rubber-ware development, manufacturing and distribution facility at Wigram demonstrated its continued commitment to innovation and to growth, he said.
Mr Mair noted a focus on good disciplines was important when markets got tougher.
Skellerup improved operating cash flow to $30.9million in the 2016 financial year.
"We expect to continue to generate strong cash flow, which provides and excellent dividend stream for shareholders and the ability to invest in our business."
