20 February 2015
The Directors of Cavalier Corporation have announced that for the six months ended 31 December 2014, the unaudited group profit after tax is $32,000, representing a $3.4 million reduction on the same period last year. The earnings decrease reflects the tough trading conditions encountered by most business units within the Group.
The gains made from restructuring the manufacturing operations by closing spinning and consolidating tufting plants over the recent past have been dwarfed by the impact of the high New Zealand dollar, increased wool prices and very low wool grease prices.
While these adverse macro events are beyond the Company’s control, the Board and executive are focused on what it can impact and control. This includes simplifying our operations and reducing costs, growing our rest of world (ROW) markets through global partnerships particularly in the US where we are partnering with Mohawk, the world’s largest flooring company, migrating Ontera to a blended tile-distribution model, leveraging the innovative felted yarn technology and merging wool scouring in New Zealand.
Operating revenue at $103.7 million is up 1.8% on the $101.9 million reported last year, with most of this increase coming from the carpet business, where operating revenue increased by $1.8million to $88.8 million.