Nuplex unhappy about earnings

Nuplex Industries has turned in a ‘‘disappointing’’ annual result, but investors have regained some confidence.

The NZX-listed Auckland industrial chemicals and resins maker’s annual net profit rose 18 per cent to $52.4 million, from the same 2013 year. However, that was influenced by several one-off items, including the sale of an investment in the Quaker Chemical joint venture and reduced provisioning for the Fibrelogic joint venture.

When adjusted for the one-offs, the Nuplex’s profit eased 3.1 per cent to $55m.

Chief executive Emery Severin said it was ‘‘disappointing’’ that the trading profit of $125.7m was also 0.6 per cent easier on last year’s figure, as it had been expected to grow year-on-year. Returns were not at the level the company would like, he said.

Nuplex had downgraded its profit guidance twice ahead of the result announcement.

Nuplex’s shares jumped to a four-week high of $3.10 yesterday, before closing up 7 cents at $2.96.

An 11c final dividend gives an unchanged annual rate of 21c a share.

Nuplex’s ability to deliver flat earnings in recent years, despite the significant decline in Australia and a strong New Zealand dollar, was because of its success in Europe and Asia, Severin said. Those regions accounted for about 70 per cent of earnings.