Originally Posted by
Snoopy
The currency should be helping this exporting company in FY2016. The problem is two of their biggest selling consumable lines, the rubber attachments used in milking cows and the slurry handling rubber couplings used in iron ore extraction, have customers facing severe headwinds. These headwinds are likely to delay the aforementioned purchases rather than stopping them. But it does mean the first half of financial year coming up could be soft.
There are other good things happening in Europe. Maserati sales exceeded 35,000 in 2014 and are on target to exceed 50,000 in 2015. Skellerup supplies all the driveline couplings for those through their Italian factory. Even better Alfa Romeo are using a modified version of the mid size Maserati platform as the basis for their new rear wheel drive BMW challenging saloon. If that takes off we could see Skellerup driveline coupling sales increase by a factor of 5. What would that do the bottom line in coming years?
SNOOPY