Ann: FORECAST: NPX: MARKET UPDATE

• Release Date: 05/06/12 11:51
• Summary: FORECAST: NPX: MARKET UPDATE
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NPX
05/06/2012 09:51
FORECAST

REL: 0951 HRS Nuplex Industries Limited

FORECAST: NPX: MARKET UPDATE

NZX/ASX release        5 June 2012

MARKET UPDATE

Trading conditions in the second half of the 2012 financial year as expected

Nuplex Industries (Nuplex) today announced that its 2012 financial year
earnings before interest, tax, depreciation and amortization (EBITDA) is
expected to be around the bottom end of previously stated guidance for flat
to 5% year on year growth. Given this, the result is estimated to be around
2011 financial year EBITDA of $131 million. Trading conditions in the second
half of the 2012 financial year have been broadly in line with management's
expectations as announced in February 2012.

Emery Severin, CEO, said: "In light of the ongoing uncertainty in global
markets, it is understandable that there are concerns as to how this is
impacting Nuplex's operating performance and so we felt it appropriate to
provide this update. Pleasingly, our geographic and product segment diversity
has helped reduce the impact of the volatility and weakness of global markets
on our earnings.

"In ANZ, and as expected, all our businesses have faced challenging market
conditions as demand from the manufacturing sector has remained weak and
activity in the construction sector has continued at a cyclical low. While we
previously expected our own manufactured volumes to be down 9% year on year,
they are more likely to be down around 12%.

"In Asia, we continue to expect volumes to be flat year on year, with a
slight improvement in second half volumes due to regional sales initiatives.
Some of our capacity constraints are being relieved following the successful
April commissioning of the new plant at our site in Vietnam.

"In Europe, trading conditions in the second half have been similar to the
first half, as demand from customers based in northern Europe has continued
to hold whilst demand from southern European customers and exports has
remained weaker than last year. Consistent with our February guidance, we
expect volumes, excluding Viverso, to be down 5% year on year. Integration of
the Viverso acquisition still remains on track and we expect it to contribute
at least EUR5 million EBITDA during the second half.

"In the US we continue to forecast volumes to be flat year on year.
Positively, over the past few months we have seen demand strengthen on the
back of improved manufacturing activity.

"During the period, in addition to challenging market conditions, exchange
rates and raw material prices have fluctuated significantly. However with our
focus on managing those elements we can control, we have seen an improvement
in unit margins, we have delivered this year's NuLEAP targeted benefits and
costs have been tightly controlled" Mr Severin said.

The company will report its financial results for the 2012 financial year on
17 August 2012.

For further information, please contact:
Josie Ashton, Investor Relations ? +612 9666 0342 ? [email protected]
End CA:00223565 For:NPX    Type:FORECAST   Time:2012-06-05 09:51:13