Nuplex forecasts earnings boost
Specialty chemicals company Nuplex is forecasting increased earnings for the 2013 financial year on the back of a trans-Tasman restructuring programme.
At its annual meeting in Auckland today, chief executive Emery Severin announced the company is predicting earnings before interest, tax, depreciation and amortisation for the 2013 year will be between $135 million and $150 million.
This is compared to EBITDA of $131 million last year.
Nuplex is in the midst of a restructuring programme which involves shutting down factories in Canningvale and Wangaratta in Australia, and Onehunga and Penrose in New Zealand.
“Approximately 8% of Nuplex employees will be impacted by the changes, however these changes are necessary to sustaining operations,” Mr Severin told shareholders.
The company employs 800 people in Australia and New Zealand.
Mr Severin made much of Nuplex’s acquisition of German resin maker Viverso, whose earnings for the first six months were ahead of expectations.
“The business is on track to deliver earnings of at least 12 million euro in the 2013 financial year.”
Earnings of its Masterbatch operations in Australia are also expected to generate $A5 million this year after getting off to the slow start.
He says demand is reduced in Australia, and that is not expected to change in the near future.
“In New Zealand, trading conditions have shown a slight improvement, and in Asia they remain steady. Volumes in the US have been flat compared with Q4 last year,” Mr Severin says.
In August, Nuplex reported a net profit of $62.5 million, down 6%.