Latest / Best of Business / Graham Leaming: Skellerup CEO on the company lifting its full-year profit outlook based on strong US demand

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Graham Leaming: Skellerup CEO on the company lifting its full-year profit outlook based on strong US demand · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks'd be follow
• 0:12
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• 0:17
  Speaker 2: Gave us all good news yesterday they lifted their annual
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  Speaker 2: profit forecast. The reason seems to be America demands robust
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  Speaker 2: and tariffs didn't really seem to make that much of
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  Speaker 2: an impact ground Leaving as the scaler up CEO, he's
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  Speaker 2: back with us, Graham, Morning to you.
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  Speaker 3: Good morning, Mike.
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  Speaker 2: Terriff's talk us through. Why haven't they affected you? Have
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  Speaker 2: you sold through them?
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  Speaker 3: Yeah? A couple of things, Mike, I guess. Firstly, when
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  Speaker 3: we last gave our guidance in February, the terriffs was
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  Speaker 3: still at a higher rate than they are now. So
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  Speaker 3: in fact, the stuff we released our half year results,
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  Speaker 3: they dropped back to ten percent when the IPA terrafts
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  Speaker 3: were reduced or removed and replaced whether what they called
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  Speaker 3: the section one two two terrasts. So arrats were a
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  Speaker 3: little bit lower, but also demands held up more strongly
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  Speaker 3: in the market than we thought it might. We thought
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  Speaker 3: the terriff impact the Middle East in conflict, they might
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  Speaker 3: drive inflation and might dampen demand for US in the
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  Speaker 3: US market. But that hasn't materialized. Demands continued to remain
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  Speaker 3: main strong, and the nature of what we manufacture and
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  Speaker 3: sell is often pretty critical to our customers, and so
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  Speaker 3: we are able to adjust prices in response to tariffs
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  Speaker 3: and raw material crist increases as well.
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  Speaker 2: That's interesting because we got an inflation readout of America
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  Speaker 2: this morning. What's your read on America as I mean,
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  Speaker 2: it seems fantastically resilient.
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  Speaker 3: Yeah, certainly that's the case for US, Mike. It's our
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  Speaker 3: largest market and our fastest growing market for a number
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  Speaker 3: of years, so it's one that we've continued to put
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  Speaker 3: more people into, more resources and at the front end
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  Speaker 3: in the US. Importantly, I think we're viewed as a
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  Speaker 3: US business, which is quite important, and the range of
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  Speaker 3: applications and products that we sell are often very important
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  Speaker 3: to the applications that our customers using them.
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  Speaker 2: In our dollar helping.
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  Speaker 3: Yeah, at the margins, the dollar's helped a little bit.
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  Speaker 3: Of course, it's a risk that we heat, so the
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  Speaker 3: hitting we have in places is slightly above what the
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  Speaker 3: spot rights have been, but neat need. At the margins,
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  Speaker 3: it's been a slightly positive effector for us and for
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  Speaker 3: twenty six as well well.
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  Speaker 2: Congratulations and made the good news. Keep on coming, Ground Leaming,
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  Speaker 2: who is a scalar up? So you know they do
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  Speaker 2: at I mean everyone thinks of scalar up as gum
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  Speaker 2: boots of course, which is true they are, but they
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  Speaker 2: do potable water and waste water and dairy and marine
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  Speaker 2: and applications, so they've got a lot of stuff going
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  Speaker 2: on these days.
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