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Australia's Ansell's profit falls 7 percent, misses forecast
August 13, 2017 / 10:53 PM / 3 months ago

Australia's Ansell's profit falls 7 percent, misses forecast

(Reuters) - Australian rubber-products maker Ansell Ltd (ANN.AX) said on Monday its full-year profit fell 7.2 percent, missing forecasts, as it was hurt by rising raw material costs and one-off acquisition charges.

Boxes of Ansell condoms are displayed for sale at a local pharmacy in Sydney, Australia, May 16, 2016. REUTERS/David Gray

Net profit for the 12 months to June 30 fell to $147.7 million from $159.1 million a year ago, missing an average estimate of $155.6 million according to 7 analysts polled by Thomson Reuters I/B/E/S.

Earnings-per-share (EPS) were $1.00, at the bottom of the company’s full-year guidance for between $1.00 and $1.12.

The company said it expected its continuing business earning-per-share for financial year 2018 to be between $0.91 to $1.01, lower than its EPS guidance for the previous year.

Raw material price rises hit profitability by $11.8 million for the year, the company said, with product-price rises in response yet to be realised in the accounts.

Costs associated with the review and eventual sale of Ansell’s condom business in May and charges from its acquisition of glove-maker Nitritex in January also hit earnings by a combined $13.7 million.

Ansell expects to book a $365 million after-tax gain next year on its sale of the flagship condoms business, for $600 million to China’s Humanwell Healthcare Group Co Ltd (600079.SS) and CITIC Capital China Partners in May.

The sale buoyed the share price, which had skidded in February when rising raw-material costs and foreign-exchange fluctuations kept profit growth flat.

Overall annual revenue rose to $1.6 billion from $1.57 billion a year ago.

The company declared a final dividend of 23.75 cents per share, up from 23.5 cents a year ago. The company reports in U.S. dollars.

Reporting by Rushil Dutta in Bengaluru; Editing by Stephen Coates

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