Nuplex Falls Most This Year on Plant Closures: Wellington Mover
Nuplex Industries Ltd. (NPX), a New Zealand maker of resins used in paint and printing, fell the most this year after saying plant closures, job cuts and write- downs will reduce full-year earnings.
Net income will be reduced by NZ$17 million ($14 million) in the year ending June 30, 2013, the Auckland-based company said in a statement, without providing a forecast. Profit was NZ$62.5 million in the last fiscal year. The stock fell 6.6 percent, its biggest decline since Dec. 16.
Nuplex said it will close three sites in Australia and New Zealand, and part of a fourth site because of declining demand. The closures will incur costs of NZ$16.4 million from write- downs, redundancies and site remediation, it said.
“Manufacturing customers and their customers continue to move offshore due to the impact of the ongoing strength of the Australian and New Zealand currencies,” Chief Executive Officer Emery Severin said in the statement. “In construction, while activity will recover at some point, demand conditions remain subdued.”
Nuplex will spend NZ$13 million over two years at two Australian sites and expects the restructuring program will boost earnings in 2014.
The stock fell 21 cents to NZ$2.97 at the close of Wellington trading. It earlier fell as low as NZ$2.94.
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