Protective clothing and condom make Ansell has cut its full year earnings guidance, as a result of weakening economic conditions and subsequent cuts in orders.
The company’s predicted earnings per share has dropped from the range of $US1.05 to $US1.20.down to the US95 cents to $US1.10 range (a fall of about 10 per cent).
At the time of the October AGM, Ansell announced a sales decline of 1% for the first quarter F’16 against prior comparable period on a constant currency basis and reaffirmed guidance in expectation of generally improved trading conditions for the balance of the fiscal year. Growth trends improved in line with expectation in the second quarter.
Subsequent to conclusion of the second quarter, the Company recorded lower January sales than anticipated, as customers deferred or reduced orders to adjust inventory levels amid a general weakening in the external economic environment. In addition, continued currency and economic volatility presents challenges to forecast visibility, particularly in emerging markets.