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

 


Analysts pull back Nuplex profit estimates for next 3 years

Analysts pull back Nuplex profit estimates for coming 3 years as increased rivalry crimps margins

By Tina Morrison

June 12 (BusinessDesk) - Analysts have pulled back their expectations for Nuplex Industries' profit for the next three years after the chemical manufacturer warned earnings would be hurt by increased competition at its ANZ unit.

Expectations for 2014 net income have come back an average 9.5 percent to $55 million, from $56.8 million in 2013, and reduced by an average 9 percent to $62.6 million for 2015 since Nuplex cut its 2014 earnings guidance on June 10, according to Reuters data. Dividends are expected to remain unchanged at 21 cents the coming two years, a level the company has held the past four years, according to Reuters.

Shares in Nuplex have declined 5.1 percent the past week, making them the worst performer on New Zealand's benchmark NZX 50 Index, after the company warned increased rivalry would crimp margins at its ANZ resins and specialty chemicals businesses. A weaker Australian dollar against the New Zealand currency would also have a negative impact on earnings, Nuplex said.

While the company's European and Asian units are "trading well", it is "insufficient to offset the dilutive impact of Australia," analysts at Craigs Investment Partners and Deutsche Bank said in a note. "There is no quick solution to the Australian problems. The intense competitive pressures combined with the weak Australian dollar suggest Nuplex's earnings will remain vulnerable to the dilutive impact of Australia in the near-term."

Following the June 10 announcement, Nuplex shares fell to $3.10, their lowest in almost 10 months. The stock recently traded at $3.16. Shares in Nuplex are rated an average "hold" according to analysts polled by Reuters.

Analysts have pulled back their estimates for Nuplex's 2016 net income by an average 6.5 percent to $72.8 million, while the dividend is seen rising for the first year in six to 22.8 cents per share.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news