Resin manufacturer Nuplex Industries notched up its best gain in almost five months in Wellington trading after raising its earnings outlook for the second time in five weeks.
Earnings before interest, tax, depreciation and amortisation may rise as much as 48 per cent, the Auckland company said.
The stock gained 8.2 per cent to US$3.30 in early trading, the biggest gain since August 27, closing 15c up at US$3.20. Nuplex shares have surged 38 per cent in the past three months and are the best performer on the nation's benchmark NZX50 index.
The company, which sells resins used in paints and construction materials, said global trading conditions improved in November and December while raw material costs were stable.
Full-year earnings will be $120 million to $135 million, the company said. On December 17, the forecast range was $110 million to $120 million.
Earnings a year earlier were $91.5 million and analysts expected $115 million, according to an average of six estimates.
First-half operating profit exceeded $60.6 million, the company said. It will publish full results on February 25 and plans to reinstate a first-half dividend.
- BLOOMBERG
Nuplex notches up best gain in trading
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