Nuplex Industries, which twice lowered its earnings guidance, posted full-year profit growth of 18 percent as the chemicals manufacturer fattened its margin on coating resins in Asia and Europe.
Profit rose to $52.4 million in the 12 months ended June 30, from $44.5 million a year earlier, the Auckland-based company said in a statement. Sales were down 1.5 percent to $1.6 billion. Profit just topped analyst expectations in a Reuters survey of $52 million.
Nuplex had cited competition across its Australia and New Zealand businesses, when lowering guidance, saying margins had been squeezed in the region for both resins and specialty chemicals.In late 2012, the company embarked on a plan to reduce ANZ Resins capacity by 30 percent and in February this year it reorganised both ANZ Resins and Specialties to strip out costs and flatten its management structure.
Profit included $2.6 million of one-time items including a $7.5 million gain on the sale of its Quaker Chemical (Australasia) stake and an $8.8 million loss on the sale of its holding in RPC Pipe Systems, a venture known as Fibrelogic. Operating Ebitda for the year was $125.7 million, at the top of Nuplex's guidance range and just below 2013's $126.4 million.
"The performance of Europe and Asia over the past 12 months was pleasing and exceeded management expectations. However, the performance in Australia was much weaker than expected, due to increased pressure on margins in both the Resins and Specialties segments, particularly in the second half," said chief executive Emery Severin.