Schaffer unveils spike in profits

Diversified industrial group Schaffer Corporation has announced a 118 per cent spike in interim net profit, led by a strong result by its automotive leather division.

The Western Australia-based company lodged net profit of $4.4 million for the six months to December 31, up from $2.03 million the previous half year.

Revenue was up to $80.9 million, from $65.6 million previously.

Chairman John Schaffer said the group’s automotive leather division had delivered a 42 per cent increase in cut leather sales in China and Slovakia.

“Automotive leather has been complemented by the performance of Delta Corporation, where demand from resources and infrastructure projects in Western Australia have resulted in both a strong result and forward order bank for our precast concrete business.”

Mr Schaffer said the building materials division continued to experience tough market conditions, but was still aggressively pursuing sales and distribution strategies.

“After some significant property sales over the last 12 months, the underlying investment property portfolio is generating marginally decreased revenue and earnings but tenancies are running at close to 100 per cent,” he said.

At close of trade today, Schaffer stocks were steady at $3.35.