Nuplex Industries Ltd is signalling a record interim profit, giving it the confidence to increase its guidance for its annual result for the second time in just over a month.
The maker of industrial resins said after the New Zealand sharemarket closed that its first-half result due on February 25 will be stronger than previously anticipated.
"Directors are confident that the result will be well above the previous record of $60.6 million achieved in the first half of the 2007/08 financial year."
As a result, the company increased its guidance for earnings before interest, tax, depreciation and amortisation for the full year to between $120m and $135m.
On December 17 the company upped the guidance to between $110m and $120m from the previous $100m to $110m.
The board confirmed today that it will reinstate an interim dividend. Companies have reduced costs in response to the global economic downturn which positions them well for an upturn.
Nuplex cited a return to normal levels of profitability and a continuation of excellent cash flows in making today's statement.
"It is proving as difficult to forecast the upside of the post global financial crisis period as it was the downside at this time last year," said managing director John Hirst.
Trading conditions remained solid through November and December and raw material costs were stable.
"Our businesses continue to operate at increased levels of efficiency," he said.
Nuplex is listed on the Australian and New Zealand sharemarkets and more than 50 percent of its revenues come from outside Australasia.
Last year it carried out one of the largest rights issues relative to market capitalisation on record in New Zealand. It has said its 2009 year was exceptionally challenging and unsettling for shareholders.
