Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Nuplex Increases Profit, Dividend In Tough Envrnmt

August 19, 2005

Media statement
Financial result

Nuplex Increases Profit And Dividend In Tough Environment

Statement made by Fred Holland, Chairman, Nuplex Industries Limited

Geographic and product diversity assisted Nuplex Industries to weather adverse international trading conditions and post an after tax operating surplus of $29.2 million, an increase of 2.8%, for the financial year ending 30 June 2005.

It was the strength that comes from operating across four continents - Australasia, the Americas, Asia and Europe - that assisted us to make modest profit progress during a difficult year.

In spite of crucial international raw material shortages, savage petrochemical associated price increases, a softening demand in Australia, Asia and Europe, and a stubbornly high New Zealand exchange rate, we were able to deliver a reasonable profit in line with guidance given to the market.

While earnings per share at 40.8 cents is down on last year's 45.9 cents, as a consequence of issuing 14.6 million new shares, directors are confident in the forward momentum being achieved and have approved a 1.5 cent increase in final dividend to 14.5 cents, bringing the full year's fully imputed dividend to 26.5 cents ( up 8% or 2 cents ).

The underlying strength of operations, and the benefits of the significant expansion undertaken during the year, can be seen in the 42% increase in revenue to $929 million.

Earnings before interest, tax, depreciation and goodwill amortization ( EBITDA ) was up 10% to $81.5 million, a pleasing increase given the many challenges we faced and overcame during the year.

Nuplex is now a significantly different company following the acquisition of the Coating Resins business from Akzo Nobel for $208 million during the year.

The acquisition was an important stepping stone that has repositioned us from a regional into a global player in the resin industry utilising leading edge technology.

Our new Coating Resins business generated sales in the six month period of $255 million, and delivered an EBITDA return of $12.6 million.

In our most significant market, Australia, a softening of demand saw sales decline in New Zealand dollar terms by 1% to $478 million, and EBITDA by 10% to $44.2 million.

New Zealand traded well, increasing sales by 7% to $160 million, EBITDA by 5% to $22.3 million.

The company's capital expenditure during the year was $19.6 million, up 8%, and the debt to total tangible assets percentage at balance date was down from 41.5% to 41.2%.

Directors are offering shareholders the opportunity to reinvest their dividend back into the company through the dividend reinvestment plan at a discount of 10 cents on a weighted average sale price formulae.

In the current financial year focus will go on maximising the potential that exists within our current businesses. This will include restructuring business portfolios and seeking sensible "bolt on" acquisitions designed to achieve growth.

In the mid term there appears little change in the outlook for petrochemical prices, raw material demand and the New Zealand exchange rate.

While economic demand in New Zealand, Australia, Europe and Asia is expected to be flat with some recovery in Asia, our financial result will benefit from a full-year's contribution from the acquired coated resin's business.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news