Glass manufacturer Metro Performance Glass' profit has dived 69 percent on last year, as its Australian business continues to struggle.
Metro Performance Glass' net profit was 5m in the year to March, down from $16.3m the year before. Photo: 123RF
Its net profit was $5m in the year to March, from $16.3m the year before.
The fall was largely due to a $9.6m write off on its Australian Glass Group business.
Metroglass chief executive Simon Mander said its turnaround strategy in Australia was taking longer than expected.
"Progress has been made across all parts of the group this year, and we are pleased with the operational improvements and stronger financial results achieved in New Zealand.
"The Australian business had a disappointing year, taking longer than expected to recover from the significant operational changes we have made over the past 18 months," Mr Mander said.
The company's underlying profit, which excluded one-offs, was $14.2m, compared with $18.4m last year.
Revenue was flat at $267.8m, with a small lift in New Zealand sales, partially offsetting a 9 percent fall in Australian sales.
It cut operating expenses by 62 percent and paid down $11m of debt.
Metroglass has flagged concern over added competition entering the New Zealand market, but remained optimistic.
"As at today, there continues to be little reliable information available about the new entrant's specific plans," Mr Mander said.
"Metroglass is the clear market leader in New Zealand and is well placed to succeed having already significantly invested in new manufacturing capacity and people capabilities."