New Zealand's Scott Technology recovers profit

Scott Technology's engineering based work prospects are improving, helped in part by an uplift in the global appliance market in the last six months.

The Dunedin-based builder of automated production systems for the appliance, meat processing and mining industries, has reported a net profit for the six months to February 28 of NZD943,000 (US$665,000) recovering from a loss of NZD474,000 (US$334,000) in the prior first-half period.

The company's revenue in the first half grew to NZD20.3 million (US$14.3 million), up from NZD13.45 million (US$9.5 million) reported in the six months to February 2009.

Managing director Chris Hopkins said the improved performance and trading conditions that Scott Technology saw in the second half of 2009, continued into the first half of 2010, reflecting into sales.

''We have been successful in securing significant system sales within the appliance, precious metals and meat processing markets,'' Hopkins said in the directors' report accompanying the first half result.

''Contracts for new projects destined for Australia, Brazil, China, Chile and the USA have stretched our capacity to a point where we have a requirement for additional resources,'' he said.

Scott Technology had also been working on, and completing, production lines for customers in Australia, Turkey, the US and Spain.

There had been increased activity within the meat processing market, with the company taking advantage of this backdrop to establish Scott Technology Australia in Sydney. An Australian general manager had been appointed with significant experience in the international meat industry.