Metro Glass profit flat

AUCKLAND: Metro Performance Glass, which has more than half the country’s glass processing market, says its annual net profit is likely to be similar or even lower than last year.

It said local sales lagged behind expectations as work in Canterbury was dwindling and it had dipped in Wellington.

The Aucklandbased company said it expected net profit to be in a range of $19 million$20.5 million in the year ending March 31 compared with last year’s profit of $20.5 million.

Revenue is expected to be $240 million$245 million versus $188 million in the prior period.

The guidance includes seven months of trading from Australian Glass Group with sales estimated to be in a range of $27 million$29 million. Metro Glass bought AGG in August for $A43.1 million ($NZ45.3 million).

‘‘While Metro Glass’ sales in the year to date have grown considerably versus last year, sales have recently lagged behind the company’s expectations due to a fasterthanexpected slowdown in the Can terbury residential market and a shortterm drop in activity in Wellington following the November 2016 earthquake,’’ the company said.

Metro Glass also noted that scaling up production and distribution capability in the North Island had added to operating costs in the short term.

‘‘Meanwhile, momentum in the commercial project market continues to fluctuate, with certain large projects in particular facing protracted installation timetables. This volatility has resulted in inefficiencies for Metro Glass in production planning and inventory and labour management,’’ it said.

In Australia, it said the integration of AGG with Metro Glass is on track and the business had been trading to its expectations.

Chairman John Goulter said the supportive construction market outlook would ensure revenue growth for several years but the company needed to focus further on automation, process and cost saving across manufacturing, logistics and glazing.

The shares, which listed at $1.70 on the NZX in 2014, last traded at $1.89. — Scoop