Nuplex posts $12.6 million F/Y profit

By NZPA

Thursday 22nd August 2002

Australasian resins company Nuplex Ltd today announced a net profit after tax $12.6 million for the year to June 30.

That is an 889 percent improvement on the $1.3 million loss recorded for the same period a year earlier.

The company will pay a dividend of nine cents per share on October 11.

The result was based on total operating revenue of $421 million, up 4 percent on a year earlier, and included an abnormal writedown of $1.2 million in unproductive assets and $5.6 million in goodwill, and provisioning for tax of $8.9 million.

Earnings before interest, tax, depreciation and amortisation (ebitda) rose by 12 percent to $52.9 million.

Group sales were $420 million, up 4 percent.

Nuplex managing director John Hirst said the company was soundly based and trading strongly.

"This result gives a clear perspective of the underlying strength of the company and the progress we are making," he said.

The drivers behind the improved performance were favourable trading conditions in Australia and lower petrochemical raw material costs, Mr Hirst said.

Had it not been for the strengthening New Zealand exchange rate against the Australian dollar, the result would have been better, he added.

Sales in New Zealand were static, although the company did achieve small increases in market share.

Looking ahead, the recent purchase of Asia Pacific Specialty Chemicals is forecast to add an additional $10 million in ebitda in the current financial year.

The company expects trading conditions to remain demanding, but firm.

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