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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news