By Paul McBeth
Tuesday 25th November 2008
|Text too small?|
Weak demand in October and November prompted the company to reduce its earnings forecast to as little as $105 million, a fall of over 19%. At its annual meeting three weeks ago, managing director John Hirst said the company could exceed its record EBITDA of $122 million, with analysts forecasting earnings in the region of $130 million. Nuplex’s share price fell 5.6% to $4.25.
“Results for October were below what had been anticipated at the time of the Annual Meeting and there has been no recovery during November,” said Hirst. “Future demand remains the great uncertainty.”
The company is confident lower commodity prices will bolster its second-half performance next year, and it is working to minimise costs and conserve cash reserves. Nuplex extended its bank credit facilities, most of which were due to mature in November next year. It is well placed to “take advantage of the upturn when it comes,” Hirst said today.
Nuplex’s shares have tracked the NZX 50 Index over the past 12 months, falling 35%.
No comments yet
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