By NZPA
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Thursday 20th February 2003 |
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The company said it was now expecting earnings before interest and tax (ebit) to come in between $9.2 million to $9.6 million compared to the previous estimate in September of $10.1 million.
Shares in Vertex fell 17c to $1.48, still well off its year low of $1.10, after the announcement.
Reasons for the lower revision included significantly higher raw material prices and a stronger New Zealand dollar against the Australian currency, the company said.
Vertex exports 20 percent of its production, primarily to Australia. There had also been weaker domestic consumer demand for some dairy products over the summer, and trading conditions for consumer packaging in commodities were becoming more difficulty as those sectors faced drought and declining returns.
A new contract for $1.2 million of business with a key dairy customer would not take effect until April.
The company was considering buying another complementary business, and would make an announcement if it planned to proceed further.
Vertex said it remained committed to the payment of a final dividend, subject to the level of impact of external factors. It was considering the introduction of a dividend reinvestment scheme.
Vertex managing director Patrick Boyle said the company welcomed Christchurch businessman George Gould as a substantial shareholder, who has just upped his stake to 19.85 percent.
Mr Boyle noted Mr Gould's "successful track record as an investor in companies with growth potential".
Vertex has been the subject of a bidding war in the last fortnight between Mr Gould and another substantial shareholder, Sir Selwyn Cushing.
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