Christchurch, New Zealand, April 5, 2006--New Zealand Wool Services International (WSI) has ramped up second- half expectations, forecasting a full net profit of $3.2 million-$3.6 million, boosted by the weakening kiwi dollar, according to the Press.
The carpet and wool exporter posted an after-tax profit of $570,000 in the six months to December 31, but expects a much stronger second half. Its shares were unchanged at 42c on the news.
Managing director Michael Dwyer said the outlook was based on higher scouring volumes, and a substantial fall in the New Zealand dollar versus a basket of other currencies.
WSI exports to 25 countries.
"The international scene has improved, Europe is improving as far as we can see, also Asia is quite active and the scene in China is still one of very significant growth," Dwyer said.
Trading and profitability in the third quarter was ahead of that anticipated when the half-yearly report was issued, Dwyer said.
"Directors believe that this trend will continue into the final quarter and the full-year profit is now expected to be in line with previous better years 2002 to 2004."
Dwyer said those net profits ranged from about $3.2m to $3.6m.
The company was monitoring opportunities in industries it was involved in.
"There will be changes probably in the wool industry eventually as further rationalisation occurs, and naturally in our segment we would be part of that," he said.
