NPX
04/11/2015 10:01
FORECAST
PRICE SENSITIVE
REL: 1001 HRS Nuplex Industries Limited
FORECAST: NPX: 2016 Financial Year Guidance
NZX/ASX release 4 November 2015
2016 Financial Year Guidance
Nuplex Industries (NZSX/ASX: NPX) is today holding its 2015 Annual Meeting.
At the Meeting, the following trading update and earnings guidance for the
2016 Financial Year will be given.
Operating earnings before interest, tax, depreciation and amortisation
(EBITDA) for the 2016 Financial Year is expected to be between $140 and $155
million.
This full-year guidance is based on the following expectations;
o Asia to deliver underlying 10% operating EBITDA growth;
o ANZ to benefit from the recent years of restructuring;
o A steady performance from EMEA and the Americas; and
o Operating EBITDA to benefit from the lower New Zealand dollar, particularly
in regards to the US dollar.
The above guidance reflects the following market conditions;
Europe
Demand conditions over the past few months have been softer than expected
and, weaker when compared to this time last year. This softness appears to
have arisen from a cautious reaction by consumers to the evolving
geo-political environment in Eastern Europe and the Middle East and, a
slow-down in exports to Asia and other emerging markets. It does not appear
to be caused by any structural or cyclical changes in the European economy
itself, and Europe appears to be growing modestly after some years of
stagnation.
Nuplex expects this modest economic growth to support demand throughout the
rest of the financial year. However, the softer than expected start to the
financial year will be evident in Nuplex EMEA's first half result.
Asia
After a volatile start to the year, we are seeing some encouraging signs in
Nuplex's two key growth countries of China and Indonesia. In China, following
the impact of the stock market corrections on confidence, and the one off
event of the Tianjin explosion impacting the chemical industry, our markets
appear to be stabilising, albeit at lower than historical growth rates.
In Indonesia, market conditions are improving as government investments,
which will have a positive impact on general economic activity and demand,
gain traction.
Adjusting for foreign exchange movements, Nuplex Asia remains on track to
deliver 10% underlying EBITDA growth for the financial year.
Americas
Overall industrial markets are expected to be flat as growth from the
Automotive OEM markets is offset by reduced demand for protective coatings
used by the oil & gas, and mining sectors.
Australia and New Zealand
Markets are stable. The construction and infrastructure sectors are
underpinning demand for both coatings and composite resins.
Ends
For further information, please contact:
Josie Ashton, Investor Relations - +612 8036 0906 - [email protected]
End CA:00272805 For:NPX Type:FORECAST Time:2015-11-04 10:01:04
