Schaffer first half profits up 44% to $5.2m

West Perth-based industrial company Schaffer Corporation Ltd has announced a 44 per cent increase on its first half net profit after tax to $5.2 million, from $3.6 million in the previous corresponding period.

With revenue remaining fairly constant at $73.9 million, up from $73.7 million, the company enjoyed a 43 per cent increase in earnings per share to 37 cents.

An announcement from the company said earnings from Schaffer's building products division had benefited from its exposure to Western Australian construction boom.

Revenue in the company's paving products manufacturer UrbanStone was up, driven by a strong market in Western Australia, and assisted by the inclusion of the recently acquired Limestone Resources business.

The company expects business division earnings before interest and tax for the full year to at least equal the $6.6 million result for the 2006 financial year, having identified opportunities for operational improvement at Limestone Resources.

Earnings at the company's Howe Leather Ltd subsidiary were up while revenue was lower at $42 million, compared to $46 million in the previous period.

The increase in earnings was driven by the closing of the Australian cutting plant and the impact of redundancy and establishment costs involved in setting up the plants in Slovakia and China.

Schaffer announced plans to wind up the Gosh furniture leather business in August last year.