Nuplex boosts full-year earnings 19%

The company is in the process of being taken over by Allnex Belguim SA.

Nuplex Industries, in the process of being taken over by Allnex Belguim SA, posted a 19% gain in annual profit as earnings lifted across all its key markets.

Profit rose to $84.4 million, or 44.3c  per share, in the 12 months ended June 30, from $70.8 million, or 35.6c , the year earlier, the Auckland-based company said in a statement. Sales revenue from continuing operations increased 2% to $1.38 billion.

Nuplex said final approval for the Allnex takeover from the European Commission antitrust body is expected by the first week of September, paving the way for its transfer into the hands of the private-equity backed Belgian company to create one of the world's largest makers of coating resins. Earnings lifted across all its major markets in the latest year following recent restructuring.

Its Australian and New Zealand business turned to a profit of $10.9 million from a $100,000 loss a year earlier as sales lifted 3.6% to $296 million. Profit in Asia advanced 6.9% to $36 million as sales rose 2.1% to $324.3 million.

In its EMEA segment, which includes Germany, the Netherlands, Russia and the UK, profit increased 17% to $51.5 million as sales were little changed at $599.3 million. In its Americas business, profit surged 40% to $31.8 million as sales gained 5.5% to $181.9 million.

The latest earnings include a total of $400,000 of one-time gains, including $7.3 million in costs related to the takeover. That compares with a $3.5 million charge from one-time items in the year earlier accounts.

Nuplex shares last traded at $5.33, and have gained 12% this year.

(BusinessDesk)

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