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Nuplex profits lift 19 per cent

NZ NewswireNZ Newswire 16/08/2016 Tina Morrison

Nuplex Industries, which is in the process of being taken over by Allnex Belgium SA, has posted a 19 per cent gain in annual profit as earnings lifted across all its key markets.

Profit rose to $84.4 million, or 44.3 cents per share, in the 12 months ended June 30, from $70.8m, or 35.6 cents, the year earlier, the Auckland-based company said on Wednesday.

Sales revenue from continuing operations increased 2 per cent to $1.38 billion.

Nuplex said final approval for the Allnex takeover from the European Commission antitrust body is expected by the first week of September, paving the way for its transfer into the hands of the private-equity backed Belgian company to create one of the world's largest makers of coating resins.

Earnings lifted across all its major markets in the latest year following recent restructuring.

Its Australian and New Zealand business turned to a profit of $10.9m from a $100,000 loss a year earlier as sales lifted 3.6 per cent to $296m. Profit in Asia advanced 6.9 per cent to $36m as sales rose 2.1 per cent to $324.3m.

In its EMEA segment, which includes Germany, The Netherlands, Russia and the UK, profit increased 17 per cent to $51.5m as sales were little changed at $599.3m.

In its Americas business, profit surged 40 per cent to $31.8m as sales gained 5.5 per cent to $181.9m.

The latest earnings include a total of $400,000 of one-time gains, including $7.3m in costs related to the takeover. That compares with a $3.5m charge from one-time items in the year earlier accounts.

Nuplex shares last traded at $5.33, and have gained 12 per cent this year.

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