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.