Lenders ditch outlooks
But crisis handy for sales in rubber gloves
BANK of Queensland, QBE and Tyro Payments have joined a long list of ASX firms to withdraw earnings guidance but rubber glove maker Ansell has boosted sales amid the coronavirus pandemic.
Ansell said it had experienced a surge in demand for protective hand and body equipment and the company, along with insurer IAG, yesterday maintained its earnings outlook.
The strong sales will be offset by some industrial products amid export restrictions and lockdowns.
“Furthermore, as the COVID-19 situation changes daily there is an increasing likelihood of delays and possible disruptions to transport and local distribution,” Ansell said in a note. Shares in the company rose nearly 20 per cent in early trade to a more than four-week high and closed up 25.08 per cent at $29.03.
Regional lender BoQ scrapped its earnings guidance but maintains that its capital position and funding are strong after a recent capital raising. However, the company announced it decided that it would no longer seek APRA’s approval for an exemption in relation to the 12-months profit test for the interim dividend.
Insurer QBE also withdrew guidance, citing “extraordinarily difficult times for all stakeholders”.
Independent eftpos provider Tyro Payments withdrew the guidance in its prospectus, saying it had experienced a compression in transaction value growth rates because of measures to combat the pandemic.
“In addition, given the considerable uncertainty that remains, we are not in a position to offer a reliable forecast at this time,” said chief executive Robbie Cooke.
IAG yesterday left its FY20 guidance unchanged as overall year-to-date profitability is expected to absorb higher net natural peril claim costs and severe investment market movements.
Also yesterday, S&P Global Ratings revised its outlook on Boral from negative to stable, saying government restrictions to combat COVID-19 were likely to significantly depress the building product company’s earnings and cash flow.