Year end earnings guidance issued
24 October 2014
Cavalier Corporation advises that after three months of trading, while volumes have been consistent with previous year, margins are under pressure, and the Company is unlikely to achieve – on a normalised basis - the $5.8m profit after tax achieved in the 2014 financial year.
The expectation reflects the current high price of wool on the manufactured cost of carpet and the on-going strength of the NZD:AUD exchange rate on our AUD-denominated sales and receivables.
Australian sales and receivables were somewhat sheltered from the high cross rate in 2014 due to favourable forward cover taken throughout 2012/13, much of which have since been utilised. As a consequence, Cavalier is subject to a much less favourable cross rate in the current 2015 financial year.
It is very early in the financial year with market conditions continually changing. We will keep shareholders updated as the year progresses.
Managing Director & CEO
For and on behalf of the Board of Directors