- 8 June 2008
I picked 2 parcels last week..I see that virus as a major boost for their products
Ansell has ramped up production of protective body suits at its Chinese factory and fast-tracked the importation to China of rubber gloves and masks in response to a surge in demand due to the coronavirus.
Ansell boss Magnus Nicolin said its factory in the Chinese province of Xiamen is considered a "priority" facility by local authorities, and the company had received help from Chinese authorities to get staff back to the factory after Chinese New Year. The Ansell factory has about 600 staff.
But despite the jump in demand for the ASX-listed manufacturer's equipment, Mr Nicolin said overall the coronavirus would have a mixed impact on the company and "a minimal net impact" on its annual results."We're now producing at full speed, or even actually higher than normal production rates. So we're quite pleased about that, especially in view of the fact that most plants in China are not even operating at the moment," he said.
"We were identified as one of five priority facilities in China, and that's why the Chinese government was quite helpful. In return we have focussed a lot of production here, to provide these suits to various government authorities to be used in Wuhan and other places to protect people," he told The Age and The Sydney Morning Herald.
Ansell reported a first half profit on Tuesday of $US65.8 million ($98 million), up 3.5 per cent on the prior corresponding period, but below consensus forecasts of $US71.95 million. Total revenue rose 3.9 per cent to $US753.3 million."We currently expect the coronavirus crisis to have both positive and negative impacts on Ansell's business," Mr Nicolin said. " We are actively supporting the Chinese authorities to provide a significant amount of personal protective equipment (PPE) which has increased demand for these products. We also expect negative effects due to broader external plant shutdowns in the manufacturing sector, decreased manufacturing production, lower stock levels and potential supply chain disruption which may also have some adverse implications for our customers," he said.
Looking great on chart: each time i tried to put Thinking into that one,it turned to a dog.....should i try purely on chart?Reversal opportunity with acceptable risk:reward (IMHO).
ANN - Ansell not one of my trading favs but this opp looks good. The initial target is the old highs at $43.
View attachment 135543
Manufacturing shutdowns imposed on the business earlier in the year have been followed by labour shortages (partly due to staff and worker isolation requirements) and shipping disruptions. Not only has this hit revenue by leaving customer orders unfulfilled, but higher wage and freight costs have further crimped margins.
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