Nuplex full year profit up 7.5 pct

NZPA

Monday 22nd August 2011

Resins manufacturer Nuplex lifted full year net profit 7.5 percent to $66.5 million, despite headwinds including fast rising raw material costs, weak Australasian economic conditions and a rising New Zealand dollar.

Sales revenue rose 7.9 percent to $1.58 billion, while earnings before interest, tax, depreciation and amortisation (ebitda) fell 6.1 percent to $130.9m.

Nuplex chief executive Emery Severin said the result highlighted the strength and diversity of the company's global resins footprint, and of its Australasian specialties business.

Sales in the resins segment rose 8.8 percent from a year earlier to $1.27b in the 12 months to June 30, while ebitda in the segment fell 10.4 percent to $107m.

Volume growth in the segment was up 3.5 percent and selling prices were increased to recover rising raw material costs, while the higher NZ dollar accounted for 4 percent of the ebitda decline.

The main issue in the resins segment had been lower volumes in the Australasian non-coatings businesses, Mr Severin said.

Demand for composites, paper and ink resins as well as construction products all suffered from weaker consumer demand, less construction and manufacturing activity and strong local currencies.

Sales in the specialties segment rose 4.1 percent to $302m, with ebitda up 20.2 percent to $23.4m.

A final unchanged dividend of 11c per share is to be paid, taking the full year dividend to 21cps.

During the year, expansion projects started in Vietnam and China. They are expected to lift the company's Asian resins capacity by about 50 percent within the next three years. Nuplex is also looking for a new site in southern China.

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