Nuplex upgrades guidance
Nuplex Industries Limited (NPX) expects a FY10 EBITDA of NZ$110-$120 million, compared to previous guidance of NZ$100-$110 million. The international industrial resins and specialties group attributed the upgrade to continued strengthening business conditions globally, with ongoing signs of growing demand.
New Zealand based Nuplex expects to report earnings per share in the range of 24-28 cents.
Managing director, John Hirst, said demand had generally recovered from the low point of last financial year and had given sign of a gradual improvement into the near future.
“Asia remains the stand-out region in terms of growth in both volume sales and profit,” Mr Hirst said.
“All regions are showing the benefits of restructuring to match demand as well as of ongoing strict expense and cash management.”
Mr Hirst said costs had been reduced, cash flow remained strong and new product development continued to attract new businesses.
“Some uncertainty remains about the impact of rising raw material costs as we move towards the second half,” Mr Hirst said.
“While prices are being increased as costs rise, we continue to be cautious in our outlook and will update the market on growth expectations and our success in maintaining margins at the time of the interim profit announcement.”
Nuplex restructured its operations into two business divisions in an effort to drive future growth.
As at 1012 AEDT, Nuplex shares were up 12c to $2.20.
Leave a Reply