wattyl profit well up but market 'challenging'

Sydney - Wednesday - Feb 23: (RWE Australian Business News) -
Wattyl Ltd, the paint and surface coatings group, today announced a
profit after tax of $13.9 million, up from $9.3 million in the previous
corresponding period.
This result includes a $4.6 million write-back from previous US
exit provisions and is in line with the company's guidance in December.
Positive net cash flow of $21.7 million (before financing
activities) reduced net debt to $7.6 million, resulting in a net
debt:equity ratio of 4%. This compares with net debt of $28.0 million
and a ratio of 12% at December 2003.
Directors have declared an unchanged fully franked interim
dividend of 10C and a fully franked special dividend of 5c payable on 17
March to shareholders on the register at 10 March.
The company expects market conditions to remain challenging in
the second half and has a range of actions under way to improve market
share and recover cost increases.
The company continues to have a strong balance sheet and
recognises the importance of making structural changes to reduce fixed
costs and improve long term earnings.