Gloves and protective clothing maker Ansell’s full-year net profit has dropped 7.2% to $US147.7 million ($A186.8 million), for the year to June 30 as the company prepares for life without its long held sexual wellness business.
Raw material prices have eased. Raw materials account for around 60% of the company's cost of goods sold. Credit Suisse expects Ansell will achieve only a modest benefit in the second half but forecasts a benefit of around 5% for the first half of FY20.
First half results were ahead of Credit Suisse estimates, although the top line disappointed as global markets weakened. This situation is expected to continue, despite the company targeting 3-4% organic sales growth in FY19.
Ansell has announced the acquisition of US industrial glove manufacturer, Ringers Gloves, for US$70m. UBS incorporates the acquisition into forecasts and updates for the share buyback, resulting in upgrades to earnings per share of 0.8% in FY19 and 1.6% in FY20.