Nylex year net profit $13.1m, boosted by divestments15:04,...

Nylex year net profit $13.1m, boosted by divestments
15:04, Wednesday, 13 September 2006

Sydney - Wednesday - Sep 13: (RWE Australian Business News) -
Nylex Ltd (ASX code: NLX) today announced a net profit of $13.14 million
in the year ended June 30, compared with a net loss of $45.68 million
for the previous year.
However, the result included a net profit of $49.14 million from
divestment activity.
The company incurred a net loss of $36 million from continuing
operations ($16.27 million a year ago) on revenue down 11.4 per cent to
$290.37 million from $327.86 million.
Basic earnings per share were 1.3c, versus a loss of 5.8c.
There has been no dividend since 2001.

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Directors said Nylex experienced difficult conditions in each of
its key markets in 2005/06.
Consumer sentiment, home building activity and domestic
automotive build volumes weakened, particularly in the second half, as
petrol prices and interest rates rose.
Raw material price increases, especially for oil-derivative
plastic products, also eroded margins as limited opportunities were
available to pass these increases on.
"This environment demands that Nylex maintain an unrelenting
focus on reducing its cost base, eliminating inefficiency and further
improving productivity," the directors noted.
A restructuring provision of $6.09 million was recognised at
June 30 to maintain this momentum.
Since April annual recurring cost reductions in excess of $20
million have been implemented.
The group is redesigning all processes including supply chain,
logistics, factory productivity, preventative maintenance and
procurement. Significant further cost savings are expected to arise from
these initiatives.
Shares in Nylex rose 0.3c to 5.2c today