Swings and roundabouts for Cavalier

By Dita De Boni

A shrinking international wool market has offset gains in carpet sales for Cavalier Corporation in the year to June.

The Auckland-based carpet manufacturer and wool scourer reported a 3.8 per cent increase in turnover, from $194 million last year to $201 million this year, with after-tax profit gaining 5.4 per cent to $10.6 million.

The total dividend was up 1c from the previous year, at 26c.

Despite increased volumes in both sectors, earnings gains were unevenly distributed. Contributions from carpet were up 16 per cent and from wool down 35 per cent.

Managing director Alan James said the company was relatively happy. A big drop in wool exports to China had meant 45,000 displaced tonnes had to be placed in an already-depressed European market.

But economic recovery and prosperity in Hong Kong and China had led to an increase in carpet sales to the region.