SCHAFFER Corporation has reported a first half net profit of $6.7 million to December 31, down 34 per cent on the same period last year. The interim result reflects SFC’s revised earnings forecast released to the market in December.
A diversified industrial SFC has operations in automotive leather sales and building products, with investment in property and other assets.
The company experienced difficult trading conditions in both its core businesses over the period.
Each of the automotive leather and building products divisions felt a decline in revenue and earnings when compared with the previous corresponding period.
Despite these problems, SFC has declared an ordinary interim dividend of 50 cents per share and a special dividend of 10 cents per share, both fully franked.
As part of a divestment strategy in the first half, the company sold one property in West Perth generating $0.9 million of earnings before interest and tax.
SFC expects final results to be materially lower than the $13.8 million recorded for the 2004 financial year and also said dividends are unlikely to be maintained at their current levels post September 2005.
