Nuplex has yet again downgraded its earnings guidance for the year ending this month.
It is the second time this financial year the resins manufacturer has lowered its guidance after doing so twice last year.
Despite the downgrade, Nuplex said it's confident it can maintain its dividend at last year's level.
Nuplex now said its operating profit for the latest 12 months will be between $121 million and $125 million, including the $2.4 million in costs incurred from a reorganisation of the Australian and New Zealand operations announced in February.
Previously, the company had expected an operating profit of between $130 million and $145 million.
Nuplex said there has been further weakness in Australia since it said profit would be at the bottom of the original range. It said adverse currency movements and accounting adjustments have also lowered its estimate.
It said although sales have been as expected, its profit margins in Australia have been lower than expected and the company expects these margin pressures to continue.
It said its American operations had been on track to deliver modest profit growth but, after a recent loss of business, operating profit will now be flat.
On the positive side, Nuplex said trading conditions in Europe, the Middle East and Africa have been better than expected and its operating profit from those countries is likely to be up between 15 percent and 20 percent on last year in local currency terms.
Operating profit in Asia is expected to be up between 10 percent and 15 percent.
WDT, Pacific Brands earnings guidance
Wellington Drive Technologies and the struggling Australia-based clothing manufacturer, Pacific Brands, have also lowered their earnings estimates.
Wellington Drive says continued weakness in demand in Latin America makes it likely the company won't meet its revenue and loss estimates.
WDT which makes energy-efficient motors to power appliances has never made a profit.
Pacific Brands, which owns the Jockey, Bonds, Sheridan, Hush Puppies and Clarkes brands said it expected operating profit for the year ending this month to be between $A90 million and $A93 million.
That is down from the implied guidance provided in February of about $A105 million.
The company, which reported a bottom-line loss of A$219 million for its first half, said it expected lower earnings, higher costs, including additional restructuring costs and higher debt.
Pacific Brands said it faced challenging markets, declines in consumer sentiment and a warm autumn depressing sales of winter clothing.
