Scott Technology posts loss on US downturn

Tuesday 7th October 2008

Scott Technology, which supplies manufacturing equipment for whiteware manufacturers and meat companies, posted a full-year loss on a downturn in the US and the impact of drought on slaughterhouses at home.

The net loss was NZ$818,000, or three cents a share, in the 12 months ended August 31, from a profit of NZ$3.1 million, or 12.4 cents, a year earlier, the company said in a statement.

"The US housing crisis, which sparked the global credit crunch, directly affected the company's key market - the home appliance manufacturers," it said. Sales to meat processors "also suffered under the strain of drought and changing fundamentals."

Shares of Scott last traded at NZ$1.27 and have climbed 14% in the past three months.

Scott said its balance sheet is strong, with cash flows of NZ$1.2 million and funds to hand of about the same amount. The company acquired Rocklabs, which makes sample preparation equipment used in the mining industry, in 2008, adding about NZ$5 million of debt to its balance sheet.

The company is on the outlook for other acquisitions, it said.

By Jonathan Underhill

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