Nuplex reports lower interim profit
Nuplex Industries Ltd has reported an 10 percent fall in interim profit on a 6.5 percent rise on revenue and has maintained its dividend.
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Nuplex Industries Ltd has reported an 10 percent fall in interim profit on a 6.5 percent rise on revenue and has maintained its dividend.
Net profit after tax fell 10 percent to $31.1 million in the six months to December 31, compared to a year earlier. While earnings before interest, tax, depreciation and amortisation was $65.1 million, down 5.3 percent on last year. The company said three percentage points of this decline was due to the impact of the higher New Zealand dollar.
The chemical and resins company said the settlement with the Securities Commission revealed yesterday had a $1.8 million impact on profit after tax.
The board declared an interim dividend of 10 cents a share, which is the same level as last year. The dividend was equivalent to 59 percent of operating profit after tax.
The company said that full-year earnings before interest, tax, depreciation and amortisation will be towards the lower end of guidance between $135 million and $145 million.
It cited uncertainty about the Australian and New Zealand economies, which represents around 50 percent of its business as a difficulty.
Sales of $761.5 million, were up 6.5 percent and reflected both higher volumes and price increases.
In New Zealand, volumes were impacted by the soft housing market and the unusually wet winter.
Raw materials prices increased by 9 percent in the half year, which the company described as significant, but it said it was able to recover 90 percent of the increases and would recover more in the second half.
"Despite a backdrop of the strengthening New Zealand dollar and rising raw material costs, today's result highlights the benefit of our geographic diversification," chief executive Emery Severin said.
NZPA
Thu, 24 Feb 2011
Thu, 24 Feb 2011
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Nuplex reports lower interim profit
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