Cavalier Corporation advises that it is in the process of finalising its results for the six months ended 31 December 2011 ahead of the preliminary announcement of these results on Monday, 20 February.
Cavalier Corporation further advises that its tax-paid profit for the six months is likely to be around $3.5 million or 59% down on the previous year’s equivalent of $8.5 million after tax.
As a result of this disappointing result for the first half and a very slow start to the second half, it is now extremely unlikely that the Company will finish the full year within the $8.5 million to $10.5 million tax-paid earnings guidance range provided to shareholders at the Annual Meeting last November.
That outlook provided in November was based on a gradual improvement in market conditions for the remainder of the financial year after a very difficult first quarter with sales volume of broadloom carpet and carpet tiles down around 20% on the previous year.
Unfortunately, market conditions on both sides of the Tasman have not improved since, with the uncertainties resulting from the European sovereign debt issues continuing to hold back a large number of major commercial projects and the subdued retail environment making it extremely difficult to maintain sales and to protect margins.
Given these difficult and unpredictable trading conditions, it is not possible to provide shareholders with a meaningful full year earnings guidance update at this stage, but the Directors will inform shareholders should conditions change.
More details on the first half will be provided together with the preliminary announcement of the results on Monday, 20 February.
15 February 2012
For more information regarding this announcement, please contact Wayne Chung on 09 277 1145 or 021 772 277.