Sanford profit slashed

Fisheries company Sanford has blamed the fall in the kiwi dollar, low catches of some species and a competitive market for a 39 per cent drop in first-half profits.

The Auckland-based exporter yesterday announced an after-tax profit of $12.1 million for the six months to the end of February, down from $19.7 million for the same period last year.

Sanford said it had suffered foreign exchange losses because most of its US-dollar sales were hedged at currency rates of about 52USc, when the average daily rate for the period had been about 42USc.

The after-tax effect of the foreign exchange losses was $10.4 million compared with $1.9 million for the same six-month period last year.

The company had also taken a position on orange roughy and had not sold into the market when other producers accepted lower prices.

Catches and sales of hoki and skipjack were also down.

Overall sales were $166 million, down from $168 million.

The company will pay an unchanged interim dividend of 8c per share. Its shares closed down 5c at $6.40 yesterday.