Nuplex hit by Aussie slowdown

Picture / Kenny Rodger

Nuplex Industries slashed its earnings forecast by up to $5 million yesterday following a sharp fall in demand for its products, particularly in Australia.

The chemicals manufacturer had previously said its earnings to June before amortisation and unusual items would be in the range of $35 million to $38 million, but it has now cut the figure to $33 million. In the previous financial year, Nuplex's earnings stood at $34 million.

As well as the fall in demand, it said it had also been hit by higher raw material costs and extra depreciation and goodwill amortisation from its coating resins unit, Akzo Nobel.

However, Nuplex said its new coatings resin business had performed to expectations.

"While market conditions are poor for us in Australia, they are not expected to have the same negative impact in the next year," it said.

Nuplex shares closed down 27c at $3.88, their lowest level since November 2003.

The shares have been on a downward bent since closing at $6.20 each on February 24.

- NZPA