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17/05/2013 14:42
FORECAST
REL: 1442 HRS Nuplex Industries Limited
FORECAST: NPX: Trading Update
Nuplex Industries Limited (NPX) today announced;
- Earnings before interest, tax, depreciation and amortisation (EBITDA) for
the 2013 financial year are expected to be between $124 and $129 million.
This compares with Nuplex's previous guidance range of $135 to $140 million.
- The final dividend for the 2013 financial year is expected to be of a
similar amount to the final dividend in the 2012 financial year.
The revision to Nuplex's 2013 EBITDA range is due to more challenging market
conditions in Australia and Europe, as well as a stronger New Zealand dollar.
- In Australia, manufacturing markets have been much weaker than expected in
2013. These conditions have particularly affected volumes in the Resins
segment's businesses and tempered sales growth in the Specialties segment's
agency & distribution business. Nuplex Masterbatch, the plastic additives
business, has also seen a softening in volumes and its EBITDA for the 2013
financial year is now expected to be around 15% below previous guidance of
A$5 million.
- In Europe, volumes in the second half of the current financial year have
been lower than anticipated due to the lengthy European winter and a general
softening in demand. Viverso's EBITDA is still expected to be approximately
EUR12 million, benefiting from its global reach.
- Markets in Asia and America have continued to perform well and in line with
management's expectations.
- The full year impact of the higher New Zealand dollar is expected to be
between $4 and $5 million.
The NuLEAP programs focused on improving operational effectiveness continue.
Both NuLEAP I and NuLEAP II are on track to deliver previously stated
benefits in the second half of $7 million and $5.3 million respectively. The
NuLEAP II procurement initiative has helped improve unit margins in the
global Coating Resins operations over the period.
This updated EBITDA guidance still accounts for $6.8 million in costs
associated with the restructure of Australian and New Zealand operations.
The strong cash flows experienced in the first half of the 2013 financial
year have continued into the second half. As a result, the final dividend for
the 2013 financial year is expected to be of a similar amount to the final
dividend in the 2012 financial year.
The company will report its financial results for the 2013 financial year on
15 August 2013.
For further information, please contact:
Josie Ashton, Investor Relations +612 8036 0906 [email protected]
End CA:00236379 For:NPX Type:FORECAST Time:2013-05-17 14:42:24
