Nuplex reports record interim profit, Australia strong

Nuplex managing director John Hirst. Photo / Dean Purcell.

Nuplex Industries today reported a record interim profit and said it is outperforming the global resin industry, in part because 40 per cent of the group's business is in Australia.

Net profit after tax in the six months to December 31 rose 481 per cent to $34.63 million on a 10 per cent decline in revenue to $714.66m.

The company is paying a 10c a share dividend on April 1.

The operating profit, at $35m compared to $11.6m last year, and earnings before interest, tax, depreciation and amortisation at $68.8m from $43.4m, were records for any half year period in the group's 54 years as a listed company.

"An all-time record half-year profit was a great achievement, reflecting successful execution of our strategy and continued focus on business efficiency.

"After a difficult but profitable year in 2008/09 - albeit a year in which Nuplex's result was the envy of most of the world's resin and chemical companies - business conditions have been somewhat more favourable and management actions have been particularly effective in optimising returns," said managing director John Hirst.

The company's significant exposure to China and South East Asia has provided growth, while most mature markets remain depressed.

"However, our significant exposure to Australia - one of the most resilient economies in the developed world and accounting for some 40 per cent of the group's business - has resulted in our returns from mature markets outperforming the global resins industry."

- NZPA