Diversified industrial group Schaffer Corporation has announced an interim net profit of $5.3 million, buoyed by a strong performance by its building materials division.
Schaffer announce today a 19 per cent jump in net profit for the half year to December 31, on revenue of $72.3 million.
Chairman John Schaffer said a strong performance in the company’s building materials division made up for a reduction in volumes for its automotive leather department.
Mr Schaffer said the group’s Delta pre-cast concrete business had capitalised on strong demand for resource and civil infrastructure works.
“Conversely, automotive leather saw the anticipated completion of a number of programs and was also affected by currency movements and the ongoing diplomatic dispute between China and Japan, which has reduced Chinese demand for Japanese vehicles,” he said in a statement.
“Whilst we face challenges as always, it is pleasing that the group’s strong cash flow has allowed us to continue our debt reduction program.”
Schaffer is expecting its automotive leather division to provide a better result in the second half of the financial year.
Schaffer will pay an interim dividend of 11 cents per share.
At close of trade today, Schaffer shares were up nearly 1 per cent, at $4.32.