Wattyl looks to Woolies to spread out
The Age
Wednesday February 17, 2010
WATTYL has approached Woolworths about supplying its paint to the retailer's new hardware chain joint venture, as it looks to increase market share and build on a turnaround in profitability.New managing director Tony Dragicevich said the arrival of the Woolworths-Lowe's backed hardware store operation could open a channel for the company."With Woolies and Lowe's entering the hardware retail market late this year and next year, there is an opportunity for all suppliers to become a supplier to that channel," he said yesterday. "Of course, as with any other paint supplier, we will be talking to Woolworths. We have talked to them already."Mr Dragicevich said it was too early to give any further details.Wesfarmers' Bunnings hardware stores stock only some of Wattyl's products, having decided two years ago to stock mainly Nippon Paints.Wattyl yesterday announced it had returned to profit in the first half of 2009-10, after cost-cutting and improved margins helped offset a fall in paint sales.Its net profit was $2.437 million in the six months to December 31. There was no interim dividend. Wattyl shares yesterday closed up 4 at 95, the highest since February 4.
© 2010 The Age
