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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news