Waterco cuts profit guidance

Waterco cuts profit guidance

Waterco (ASX:WAT) has downgraded its profit guidance for the financial year due to weather impacts and poor trading conditions.

The company, which manufactures and distributes products for the swimming pool and water treatment markets, is now expecting profit of around $3.2 million for FY11.

This compares to the company's previous forecast of $4.7 million, and FY10 profit of $3.7 million.

CEO Soon Sinn Goh said earnings had been impacted by adverse weather events across Australia, which resulted in poor trading conditions that stretched out for longer than expected.

The company advised in January that its operations, as well as those of its Swimart franchise stores, had not been directly affected by the Queensland floods.

Swimart's North American operations were also impaired by unseasonal rain in Canada and the weak economic conditions in North America generally.

“The weather disturbances have been frustrating for all concerned,” he said, but said conditions were unlikely to be repeated in the next financial year.

The company plans to minimise expenditure to cope with the trading environment, Goh said, and expects conditions to improve in FY12.

WAT shares closed flat at $1.250 during Thursday's trading.

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Tags WeatherGuidanceSoon Sinn GohWatercoASX:WAT

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