Dexion feels worst is over

While storage equipment company Dexion has reported a first half net loss of $1.7 million, the company is confident the worst is over and has maintained its full-year profit outlook.
 
"The first half of 2009 was the most difficult trading period for Dexion this decade," managing director Peter Farmakis said. "Many of our customers responded to the global financial crisis in late 2008 by reducing capital expenditure. Our markets in New Zealand were already in recession and very quickly we experienced a significant fall in revenue in our key market of Australia."
 
The industrial division’s revenue was impacted by a decline in demand from its distributor sales channel in Australia. In addition, prior year revenue benefited from a large systems project.
 
“During the past six months, Dexion has moved swiftly to respond to the fall in revenue as a result of customers’ reduced capital spending,” the company said in a statement. “The company has continued with key business improvement projects, such as an IT upgrade in New Zealand, and has trimmed costs judiciously and moved to preserve cash.”
 
Guidance for 2009 remains EBITA of $7.2m. The final dividend will be determined in light of the full-year results and outlook at that time.
 

You may also like to read:


,

Comments are closed.

Newsletter

Sign up with your business email address to keep up with the latest industry news from T&L. Newsletter sent every week.

Most Read

Kalmar launches 9-18t lithium battery electric forklifts
Kalmar, part of Cargotec, has introduced a medium electric f...
Technology => efficiency – from MHD magazine
Bart De Muynck Government regulations requiring greater com...
The SMART Distribution Centre opens
Schneider Electric has successfully completed the digital tr...
Australian retail: officially in recession
Phil Chapman “GFC-level terrible.” Those were the wo...
Moving with the times – from MHD magazine
Peter O’Connor Data warehouses are far from new. The term...
Own the future – from MHD magazine
Martin Kohl The distribution centre of the future will need...

Supported By