Sharechat Logo

Slow recovery underpins Nuplex in key markets

Wednesday 9th June 2010

Text too small?

Nuplex reports gradual recovery across its main markets and expects to be able to increase prices to offset rising raw material prices.  

In an investor update presentation lodged with the NZX, Nuplex says its previous guidance of earnings before interest, tax, depreciation and amortisation remains on track for a record year at between $125 million and $135 million "largely driven by demand and some margin recovery."

Nuplex shares jumped 4.7% to $2.90 on the NZX and have dropped 16% in the past month.

After a horror year in 2008/09, caused by the triple whammy of high foreign debt, a weak kiwi dollar and the global recession, Nuplex reports interest costs will be "much lower" in the current financial year, and that capital expenditure needs are low until 2011, with a new executive team in place.

In its American markets, Nuplex says some recovery in demand is occuring, and that operations will be assisted by lower operating costs and gains from new technology.

In Asia, which continued to show strength last year, growth will continue but at a lower rate, and with some margin tightening, while in Australia market conditions are roughly the same as last year and lower operating costs will assist.

The New Zealand market is in "slow recovery phase". The domestic operation has high fixed costs that need to be addressed, with corporate costs - albeit under better control - exceeding operating profit.

Nuplex is "cautiously optimistic" about Europe, although that market could stall this year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Nuplex targets half billion dollar Asian sales within five years
Nuplex FY profit drops 31 percent on weak ANZ, EMEA markets, writedowns
Nuplex cuts FY guidance again as Australian manufacturing splutters; stock drops
Nuplex 1H profit misses forecasts; annual guidance cut on strong kiwi, weak trading conditions
Nuplex looks at imputing future dividends, flags increased earnings
Nuplex plans restructuring in Australia, NZ to cut 2013 profit
Nuplex FY profit falls, guidance met
Nuplex raises US$105M in US private placement
Nuplex sees full-year earnings at bottom of range
Nuplex 1H profit drops 23% on Australasian weakness