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

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news