Skellerup's chief executive, David Mair, said New Zealand's dry summer and ''sluggish'' international demand had prompted a downgrade in forecast after-tax profit in February, down 15% from $20 million to $17 million, as sales of airy liners and rubber footwear disappointed.
''While the very recent rain is a welcome relief for our customers and Skellerup, we will not fully recover the deferred sales within the current financial year as farmers will delay some of their buying till the new season,'' Mr Mair said.
Skellerup shares were sold off after the announcement, down more than 10%, or 15c, to trade around $1.33.
Mr Mair said the expected profit was also affected by declining demand from Skellerup's North American and European customers.
Craigs Investment Partners broker Peter McIntyre said Craig's had forecast Skellerup's profit at $129.7 million, with analyst consensus at $20.1 million.
''We expect negative risk to earnings because of the lag between the decline in activity and earnings, but their downgrade was higher than we expected,'' he said.
Aside from its well known Red Band gumboots, the 113-year-old Skellerup manufactures and exports industrial rubber products, including an expanded footwear range, dairy rubber, vacuums, filters and a variety of pumps.
Skellerup's full-year financial report, to June, will be released in late August.
