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

 

UPDATED: Nuplex meets guidance as earnings growth stalls

UPDATED: Nuplex meets FY guidance as earnings growth stalls; shares rise

(Adds broker comment in the fourth paragraph)

By Hannah Lynch

Aug. 17 (BusinessDesk) - Nuplex Industries' full-year earnings growth stalled, meeting its guidance, as the contribution from newly acquired Viverso and improved resin margins made up for falling volumes and the impact of a high kiwi dollar. The stock climbed on the news.

The specialty chemicals company reported earnings before interest, tax, depreciation and amortisation of $131 million in the 12 months ended June 30, little changed from a year earlier.

Net profit fell 6 percent to $62.5 million as sales rose 2.6 percent to $1.6 billion.

"Investors sold down in preparation of the result - there is a bit of a relief rally going on," said Bryon Burke, head dealer at Craigs Investment Partners. "There is no reason why the price shouldn't stay in positive territory."

The shares rose as high as $2.83, the highest since October 2011, following the announcement, and recently traded up 3 percent to $2.75 percent. The stock is rated a 'hold' based on five recommendations complied by Reuters, with a price target of $2.50.

Nuplex will pay a final dividend of 11 cents a share, unchanged from the previous year.

Nuplex ramped up its gearing in the latest year to 28 percent from 12 percent as it debt funded the acquisition of German resin maker Viverso and the Masterbatch operations of Acquos in Australia. Viverso contributed six months of ebitda in the latest year amounting to $10.4 million, which exceeded Nuplex’s estimate.

“To deliver earnings in line with the prior year is a credible result considering the softer market conditions experienced in Asia and Europe and the particularly tough trading conditions faced in Australia and New Zealand,” chief executive Emery Severin said in a statement.

Excluding Viverso, ebitda fell 8 percent in the latest year.

The Auckland-based company didn’t give explicit guidance for the 2013 year, saying earnings would benefit from its two-year NuLeap review of its businesses, full-year contribution from Viverso, new capacity in Vietnam and an estimated A$5 million contribution from Masterbatch in Australia.

The NuLeap program $14 million in incremental benefits, beating the company’s $10 million estimate.

"We has a strong second half as a result of improved unit margins in our global resin segment, the delivery of greater than expected NuLeap benefits and the first six months earnings contribution from Viverso," Severin said. "Combined these factors offset the impact of lower volumes in our global resin segment and the stronger New Zealand dollar."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: