Methven downgrades profit outlook

Bathroom products manufacturer Methven has downgraded its profit outlook for the year ending March 31.

Methven chief executive Rick Fala said the company's anticipated profits had been squeezed by lower than expected sales in the second half of the year and tough trading conditions in the Australian valve market.

"At this stage we're looking at the company's 31 March year end profit position being on par with, or marginally behind, last year when we had been cautiously targeting a continued lift in revenue and profitability after a strong first half result," he said.

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.

Mr Fala said its valve division had come under pressure from competitive pricing in Australia, which led to a big drop in sales compared with the same period last year.

He said the group's sales in New Zealand were expected to be close to those achieved in the second half of the last financial year, but well below the first half of this year.

Methven shares last traded yesterday at $1.29, having ranged between $1.19 and $1.60 over the past year.

- NZPA