Nuplex Industries, which had cut its earnings guidance three times, posted a 31 percent drop in full-year profit on weaker earnings from its resins division and one-time charges. The specialty chemicals company expects to lift earnings in 2014.
Net profit fell to $42.9 million, or 21.7 cents a share, from $62.5 million, or 31.8 cents, a year earlier, the Auckland-based company said in a statement. Sales rose 3 percent to $1.66 billion. Profit lagged behind First NZ Capital's $44.4 million forecast though unchanged dividends for the year of 21 cents a share were expected.
Nuplex cut its guidance for a third time in May, citing a slump in Australian manufacturing which trimmed demand for resins, specialty chemicals and plastic additives. Its guidance today is that the Australian market will remain flat while its home market of New Zealand will "show some modest growth."
Earnings before interest, tax, depreciation and amortisation fell 3.5 percent to $126 million, in line with its May guidance of $124 million to $129 million. The company expects to beat that in 2014, it said. Net debt fell to $198 million as at June 30, from $220 million a year earlier and gearing fell to 26 percent from 28 percent.
"Looking ahead to the 2014 financial year, consistent with what we have seen in recent months, we are expecting flat trading conditions in Australia and Europe, modest growth in New Zealand and the Americas and steady growth in Asia," chief executive Emery Severin said in the statement.