Nuplex increases guidance - again
After a fairly miserable 2009, the resin rollercoaster is rolling on with manufacturer Nuplex now forecasting a record first half profit for 2010 and the return of an interim dividend.
The company is predicting its result for the first half of the financial year will be “well above” the previous record of $60.6 million posted in the 2008 first half.
It is also picking ebitda to be between $10 and $15 million higher than previously forecasted at a range of $120 to $135 million.
Nuplex’s fortunes suffered a major blow when the global demand for its resin products collapsed in late 2008, and it spent much of last year rebuilding through a capital raising and a heavy focus on cost reduction.
The company was quick to point out that its guidance was preliminary in nature and was subject to finalisation of the half year accounts as well as external audit review, but noted that directors were confident of the record result.
The fall in demand seen 14 months ago made forecasting almost impossible and managing director John Hirst said the company was now facing a similar problem at the other end of the scale.
“It is proving as difficult to forecast the upside of the post global financial crisis period as it was the downside at this time last year. Trading conditions remained solid through November and December and raw material costs were stable, while our businesses continue to operate at increased levels of efficiency. As a consequence, we anticipate a record result for the first half.”
While he conceded that it was still difficult to be certain of demand in the second half, Mr Hirst said current trends are unlikely to change in the near term.
He said the half year result will now be unveiled on February 25, one day earlier than previously announced,