SCL
17/12/2014 08:38
FORECAST
PRICE SENSITIVE
REL: 0838 HRS Scales Corporation Limited
FORECAST: SCL: Scales reconfirms 2015 PFI guidance
17 December 2014
Scales reconfirms 2015 PFI guidance
Following finalisation of the Group's 2015 budgets the Directors of Scales
Corporation (NZX:SCL) confirm,based on the current trading environment, that
Scales remains on track to meet the 2015 Prospective Financial Information
(PFI) forecast for the 12 months to 31 December 2015.
PFI includes EBITDA of $41.2m and Net Profit After Tax of $20.8m. Budget
highlights include:
- Horticulture:
- Mr Apple's own grown volume is expected to meet or exceed its 2015 crop
estimates of 2.72m TCEs*.
- Continued strength in Asian and Middle Eastern markets, favourable FX
movements and competitive shipping rates are expected to offset downward
price pressure generated by the Russian trade embargo.
- Storage & Logistics:
- Steady volumes and levels of utilisation have been assumed, producing
another year of consistent performance from our cold storage businesses.
Storage capacity will increase by 16% following completion of the Auckland
coldstore, expected to be in the September quarter.
- New business servicing suppliers to the dairy industry is expected to
benefit Scales' bulk liquid storage business (Liqueo).
- Food Ingredients:
- Meateor is sourcing significant volumes of product from Australia helping
to diversify its raw material product procurement.
Scales will pay a 3cps interim dividend on 19 December 2014. The record date
was 9 December.
The results for the 12 months to 31 December 2014 are expected to be
announced on 26 February 2015.
Forward looking projections
All forecasts may be subject to change. Scales' business risks are outlined
in the Prospectus and Investment Statement registered on 20 June 2014 and
available on the company's website (www.scalescorporation.co.nz).
* TCE stands for Tray Carton Equivalent (18kg box of fresh fruit).
About Scales Corporation
Scales is an established agribusiness market leader with long standing
customer relationships, efficient operating systems and an experienced
management team. It comprises three operating divisions: Horticulture,
Storage &Logistics and Food Ingredients. The company's diverse spread of
activities gives Scales broad exposure to New Zealand's primary sector.
Scales was founded in 1897 as a shipping business by George Herbert Scales.
Today it employs more than 400 staff New Zealand wide. Find out more at
www.scalescorporation.co.nz
Contact:
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021975 999,
email: [email protected]
End CA:00259007 For:SCL Type:FORECAST Time:2014-12-17 08:38:16
