Shares in Nuplex have jumped after the specialty chemical maker lifted guidance for its full-year earnings on the back of strong performance in Europe, growth in its Asia and North America markets and improvements in Australia and New Zealand.
The company's shares closed up 10c, or 3 per cent, yesterday at $3.48. The Auckland-based company now expects operating earnings before interest, tax, depreciation and amortisation to be between $130 million and $134 million in the 12-month period ending June 30, up from its February guidance range of $115 million to $125 million, and ahead of the $125.7 million reported in 2014.
Nuplex has been cutting back its operations in Australia and New Zealand, where a weaker performance is weighing on growth in Asia, America and Europe. In November it sold its Australasian agency and distribution business Nuplex Specialties and its plastic additives business Nuplex Masterbatch for A$127.5 million as it focuses on its global resins business. It used the sale proceeds to reduce debt and plans to buy back as much as 5 per cent of its shares.
"Nuplex's ebitda to sales margin is ahead of management's forecast as a result of the benefits flowing from the global procurement programme, lower raw material costs and group-wide lower operating costs," said chief executive Emery Severin. "It is also due to the turnaround in profitability in the A-NZ business where the ebitda to sales margin has continued to improve following the restructure undertaken over the past few years."
