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Nuplex CEO John Hirst - Source: ONE News -
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Nuplex Industries is reporting strong earnings growth at its Asian operations.
The news is in contrast to the company's performance last financial year, which managing director John Hirst described as the most testing in the long history of Nuplex.
Nuplex on Wednesday said demand was up and costs were lower at its Asian operations, resulting in Asia doubling its proportion of the company's group profit this year.
In Asia, Nuplex has plants in China, Vietnam, Thailand, Malaysia and Indonesia, manufacturing a range of water-based, solvent-based and powder resins for the coating market, and also composite resins.
Nuplex had strong sales in China and Vietnam, and there were positive signs of demand returning in other South East Asian markets, Hirst said.
"This growth in Asian earnings is a major step in Nuplex's development as a significant global group and confirms the benefits of the company's strategic positioning in emerging markets," Hirst said.
An earnings update is to be provided at the company's annual meeting on November 6.
Last financial year Nuplex had to raise nearly $160 million in new capital to meet debt commitments, following a fall in first half sales.
For the year to last June, Nuplex reported a 65.4% fall in full year net profit to $16.7 million, while revenue fell 2.5% to $1.49 billion.
Nuplex shares were unchanged at $2.39 around mid-afternoon.
