A drop-off in residential and commercial construction activity has hit earnings at carpet market Cavalier Corporation.
The listed company made a $7,014,000 profit in the six months to the end of December - down 6% on the same period last year. Revenue also fell 14% to $112,828,000.
Cavalier managing director, Wayne Chung, says when concerns about the global economic slowdown first emerged in the last quarter of 2008 they caused the worst turnaround in trading ever experienced by the business.
Mr Chung says the market for commercial and residential carpets continue to be affected by concerns about global slowdown and the financial crisis, however sales are showing gradual signs of improvement.
The company now expects to make a full year profit of between $14.5 million and $15.5 million - an increase of between 6% and 13% on the previous year.
Cavalier will pay a dividend of 4 cents a share.