Nuplex Industries Gains Most in Four Months as Profit Outlook Reiterated
Nuplex Industries Ltd., a New Zealand resin manufacturer, rose the most in more than four months in Wellington trading after saying rising costs won’t reduce its earnings forecast.
Earnings before interest, tax, depreciation and amortization may rise as much as 48 percent, the Auckland-based company said in a presentation sent to the stock exchange, reiterating guidance published on Feb. 25. The stock rose 4 percent, the biggest gain since Jan. 22.
Before today, Nuplex had dropped 17 percent the past three months amid concerns that rising raw material costs and the debt crisis in Europe may curb earnings. The company, which sells resins used in paints and construction materials, today said it’s confident it can recover higher costs through price rises.
The stock increased 11 cents to NZ$2.88 at the 5 p.m. market close in Wellington. It fell to the lowest close in more than five months yesterday.
Full-year earnings will be NZ$125 million ($83 million) to NZ$135 million in the year ending June 30, from NZ$91.5 million a year earlier, the company said. Profit is being driven by demand and some margin recovery, it said.
The presentation was made by Chief Executive Officer Emery Severin to New Zealand investors, the company said.