Home breadcru News breadcru Association/Org breadcru Feltex carpets Australian sales decline $11.3mn

Feltex carpets Australian sales decline $11.3mn

03 Sep '05
4 min read

Click here to see the results:

Annual results for the year ended 30 June 2005
After a strong first half to the financial year, Feltex experienced a difficult and disappointing second half. The net surplus for the six months ended June 2005 was $807,000, compared with a net surplus of $12.2 million in the first six months of the financial year and $13.8 million in the prior corresponding period.

The Group recorded a net surplus of $13 million for the year ended June 2005, compared to $25.2 million in the previous year. EBITDA for the second six months was $8.6 million, down 65% on the first six months of the financial year reflecting a much softer market than anticipated by the Group as well as other significant issues described below.

EBITDA for the year ended June 2005 was $33.2 million compared to $46.2 million in the prior year.

Compared to the prior corresponding period, sales were $15.7 million lower, with the shortfall analysed as follows:

- New Zealand sales increased by $1.6 million;
- Yarn sales in the USA increased by $0.5 million;
- Australian sales decreased by $11.3 million;
- Further, the translation impact of the stronger New Zealand dollar on the Group's Australian sales reduced reported revenue by $5.3 million (3.4% adverse impact on reported operating revenue);
- The closure of the Company's rubber underlay operations in the previous financial year accounted for a reduction in sales of$1.2 million.

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