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Nuplex - Source: Nuplex -
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Resins manufacturer Nuplex has reported a near six-fold increase in its first half net profit on higher sales and has confirmed its full year earnings forecasts.
Nuplex has reported a net after tax profit of $34.6 million to the end of December, compared with $5.9 million a year before.
As promised in January, the company has resumed dividends with the declaration of a 10 cents a share interim payout.
It says it expects EBITDA for the year to June 30 to be between $125 million to $135 million, a slight increase in the bottom of the range from its guidance given at the start of the year.
Operating profit, at $35 million (pcp $11.6 million), and EBITDA at $68.8 million (pcp $43.4 million), were records for any half year period in the group's 54 years as a listed company.
"The board is delighted with the rapid turnaround in the company's performance in achieving record results despite difficult trading conditions in many markets," says Nuplex Chairman Rob Aitken.
Group Managing Director John Hirst says the record is a great achievement "reflecting successful execution of our strategy and continued focus on business efficiency."
"After a difficult but profitable year in 2008/09 - albeit a year in which Nuplex's result was the envy of most of the world's resin and chemical companies - business conditions have been somewhat more favourable and management actions have been particularly effective in optimising returns."
Nuplex suspended its dividends last year as its profits dropped and it worked to bolster its balance sheet.
Market analyst Greg Easton from Craigs Investment Partners says the profit was mostly driven by "increased volumes of a very low level and lower raw material costs, which we actually think will increase over the coming half year at least."
"(It's) good to see the dividend returning at 10 cents a share, and they seem confident of being able to maintain an attractive dividend," he adds.
