GWA CUTS A $25M PROFIT
Written on the 5 March 2010
HOUSEHOLD products distributor GWA International Limited (ASX: GWT) has recorded a 3.9 per cent profit fall for the last half, despite the sale of its iconic lawnmower business to a US-based company.
GWA announced the sale of Rover Mowers yesterday to MTD Products’ Australian arm for a sum expected between $10 million and $12 million, but this resulted in a $3.4 million loss from discontinued operations.
The $25.5 million net profit result comes despite a 9 per cent surge in revenue in the half ended December 31, with the company’s building fixtures and fittings segment growing by 11 per cent.
Managing director Peter Crowley, doesn’t see any signs of underlying improvement in a difficult market, but still expects profit growth this financial year.
“We expect sales to reduce in the second half due to lower sales of environmental products,” says Crowley.
“We will be working to improve the business to offset this anticipated decline in revenue. Our focus for the next half year is to improve supply chain management and overhead efficiency through systems optimisation, to reduce working capital, and to search for growth opportunities.”
Don’t miss the full wrap-up of Brisbane’s top public companies in the March edition of Brisbane Business News.