Hills Holdings Limited (ASX:HIL) advises its first quarter results are 45 per cent lower than the corresponding period last year.
Hills has attributed the weaker performance to the continued slowing in the economy and steeper than anticipated decline in construction activity.
Based on current industry data, company directors expect volumes and margins will continue to feel the pressure moving forward, particularly in Hills manufacturing businesses.
CEO Ted Pretty says the first quarter decline has been surprising and disappointing and that Hills will accelerate its program to drive out costs across its manufacturing businesses in line with softer demand.
Mr Pretty said the company’s short term focus will include more working capital discipline to free up cash for growth.
Hills holdings posted an annual net profit of $28.8 million in the 2012 financial year.
