GLOBAL rubber products group Ansell has turned to one of the world's can-do men in its quest to crack the Chinese condom market — James Bond.
Ansell has paid $US18 million ($A24.7 million) for a 75 per cent stake in condom distributor Jissbon (Wuhan) Sanitary Products, and has an option over the rest. Jissbon is a Chinese translation of James Bond, Ansell chief executive Doug Tough said yesterday.
Apart from revealing Ansell's assault on the Chinese market, Mr Tough also reported another strong result and dividend for the former Pacific Dunlop, although the bottom line was hurt by a one-off item and currency moves.
Mr Tough said Jissbon had grown rapidly since it was founded eight years ago, and now held 10 per cent of the Chinese market. Ansell is a major supplier to Jissbon.
It was planned to introduce Ansell's Lifestyles brand at the top of the product range and this was expected to increase sales, Mr Tough said.
Ansell has also formed its own Shanghai-based subsidiary to promote further the use of Ansell's occupational gloves in a bid to cash in on the boom in manufacturing in China.
After a deduction of $5.5 million caused by the South Pacific Tyres sale, Ansell's profit was down 5.7 per cent to $51 million for the December half-year.
The positive side of the SPT deal was that the $122 million received from Goodyear meant that Ansell had no net debt and was now a net lender to the international banking system, said chief financial officer Rustom Jilla.
Excluding the SPT items, profit was up 4.4 per cent despite a 31 per cent increase in the price of latex, the company's main raw material.
Mr Tough said almost all of that cost was offset by internal restructuring, productivity gains and higher prices, which customers were accepting. He reaffirmed the earlier guidance from directors that full-year earnings would be between US54¢ and US57¢ a share.
Books will close for the 9¢ a share dividend on March 8.
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