Methven to target US market

Listed bathroom products maker Methven is readying itself for an export push into the United States.

The company said today the first shipment of Methven showerware was on its way to the US, set for an April sales launch at the premium end of the New York market.

Methven chief executive Rick Fala said the potential of the North American consumer market was huge.

"We've done our homework and our market research suggests that US consumers, particularly early adopters and women, will respond very positively to our brand," he said.

Methven has set up an office in New York, headed by the firm's former New Zealand sales and marketing manager, Stuart Gray.

The company expected modest sales in the first year, doubling by the third year. The US operation was expected to be profitable by the middle of the second year.

The US move comes as Methven faces tough trading conditions in its home markets of New Zealand and Australia.

Earlier this month, Methven downgraded its profit outlook for the year ending March 31.

The company said it expected the March 31 profit to be on par, or marginally behind the previous year.

Methven reported a net profit of $6.5 million for the previous March year, and $3.5 million for the first half of this financial year.

Shares in Methven last traded on Friday at $1.25, compared with a year high of $1.50 and a low of $1.19 struck after the profit downgrade.

- NZPA