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- Release Date: 06/11/13 10:54
- Summary: FORECAST: NPX: Earnings Guidance for 2014 Financial Year
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NPX
06/11/2013 08:54
FORECAST
REL: 0854 HRS Nuplex Industries Limited
FORECAST: NPX: Earnings Guidance for 2014 Financial Year
NZX/ASX release 6 November 2013
EARNINGS GUIDANCE FOR 2014 FINANCIAL YEAR
Nuplex Industries (NZS/ASX: NPX) is today holding its 2013 Annual Meeting. At
the Meeting, the following trading update and earnings guidance for the 2014
Financial Year will be given.
Nuplex expects earnings, before interest tax, depreciation and amortisation
for the 2014 Financial Year to be between $130 and $145 million. This
forecast is based on a continuation of recent trading conditions which have
been in line with the outlook statement provided at the 2013 Financial Year
results in August 2013.
In New Zealand, Nuplex continues to expect some modest growth as building and
construction activity levels improve.
In Australia, the economic data is showing signs of improvement in the
housing market. This is a positive for building confidence in the medium
term, but it will take time to translate into a consistent uplift in demand
for our products. For the first time in a number of years, manufacturing
markets also seem to have stabilised. Accordingly, Nuplex continues to expect
that markets will be largely flat for the 2014 Financial Year. The ANZ
restructure is progressing and will enable the region to maximise the benefit
of the market recovery when it comes.
In Europe, the more recent economic data is encouraging for the medium term
outlook. In the meantime, for the EMEA region, the market conditions
throughout calendar 2013 continue to underpin Nuplex's expectation for flat
markets throughout the 2014 Financial Year. Sales growth is forecast to come
from the sale of new products and the further development of the Viverso
product portfolio globally.
The steady recovery in the US continues and management will be focused on
optimising the product range and growing with the market.
In Asia, as forecast, Nuplex has seen growth across the region. This is
expected to continue for the remainder of the current financial year. The
new capacity in Thailand was commissioned in October, on time and on budget,
and the regional management are particularly focused on growing volumes there
and in Vietnam. Completing the construction of the third site in China and
the additional capacity in Indonesia by the end of 2014 remains a key
priority not just for the team in Asia, but also the wider Nuplex
organisation.
The difference between the lower and upper end of the forecast range takes
into account the potential for trading conditions in Australia and EMEA to be
softer or stronger than expected.
Across the group, NuLEAP initiatives will remain a priority. The execution of
NuLEAP II's global procurement initiative remains on track and is expected to
deliver approximately $12 million in benefits in the current financial year.
For further information, please contact:
Josie Ashton, Investor Relations +612 8036 0906 [email protected]
End CA:00243390 For:NPX Type:FORECAST Time:2013-11-06 08:54:14
