Scott Technology lifts 1H profit 5.6 percent even as strong kiwi dollar eats into revenue

Scott Technology, the industrial automation firm, lifted first-half profit 5.6 percent even as its sales dropped on the strength of the strong New Zealand dollar.

Net profit rose to $2.2 million, or 6.2 cents per share, in the six months ended Feb. 28 from $2.1 million, or 5.7 cents, a year earlier, the Dunedin-based company said in a statement. Sales fell 9 percent to $26.8 million.

“With a competitive environment for most of our products, combined with the higher value of the New Zealand dollar, maintaining our target margins has been challenging,” the company said. “We are working closely with several key customers to convert these opportunities into contracted, profitable work.”

The company has been on the acquisition path in the past year with a series of purchases and joint ventures, and is continuing to look at new opportunities and expanding its existing business, it said.

The shares were unchanged at $2.50, and have shed 1.6 percent this year.

The board declared an unchanged interim dividend of 2.5 cents per share, payable on April 23 with a record date of April 12.

Scott Technology has held a soft launch of a robot for the dairy industry, and expects to have a full production prototype ready for commercial release near the end of the year.

(BusinessDesk)

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