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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news