CORRECT: Nuplex guidance reiterates of forecast

CORRECT: Nuplex earnings guidance is reiteration of Feb. 25 forecast

(Corrects story that ran earlier today to show earnings guidance given in Nuplex’s interim report was first released with its first-half results on Feb. 25)

(BusinessWire) - Nuplex Industries Ltd., the specialty chemicals maker, reiterated its full-year earnings guidance and said demand is recovering from its lows of the last financial year.

Nuplex expects earnings before interest, taxation, depreciation and amortisation to be in the range of $125 million to $135 million, it said in its first-half report.

Chairman Rob Aitken said demand is recovering from the low point of the last financial year, but is still below the peak levels of 2007/2008.

“Nuplex is in a strong position,” he said. “We have a sound balance sheet and a good cash flow.”

Over the past year, the company undertook a major restructure, including selling shares at a deep discount, and introduced tight cost controls after a dwindling kiwi dollar drove the cost of its overseas debt amid falling demand for its products. Since then, they have posted a first-half profit of $34.6 million as demand out of Asia underpinned increased revenues.

The shares gained 3.9% to $3.45 in trading today. They are rated a ‘outperform,’ according to a Reuters survey of six analysts.

Earlier today, Nuplex announced the purchase of the ingredients business of Med-Chem group, which distributes medical and surgical equipment. Though the price wasn’t revealed, Nuplex said buying the group would lift earnings for its specialties unit by 15% for the first year.

(BusinessWire)

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