Listed Dunedin manufacturer and exporter Scott Technology - which booked a more than $800,000 full-year loss earlier this week - has had its two-year profit forecasts downgraded by brokers ABN Amro Craigs.
While the broker has also downgraded Scott's 12-month target price from $1.46 to $1.39, it is forecasting a "modest earnings recovery" during the next two years and maintains its "buy" recommendation on stock of the appliance manufacturer and meat industry robotics developer.
It booked a bottom-line boost received from five months of profit from its $5 million acquisition of Auckland mining equipment specialist Rocklabs, but Scott's core business revenues were their lowest in 10 years, down 46% on the previous year, at $15.8 million.
ABN broker Peter McIntyre said s appliance customers were deferring plant installation while they reassessed demand, which prompted a profit forecast decline for 2009 of 8% to $1 million and 7.1% in 2010 to $2.6 million.
Stock traded up to a high of $1.28 during the week and about $1.15 after the announcement, but with few buyers because of present volatility.
• Peter McIntyre's financial disclosure document is available on request.
