Denne informasjonen er utarbeidet av IG, forretningsnavnet til IG Markets Limited. I tillegg til disclaimeren nedenfor, inneholder ikke denne siden oversikt over kurser, eller tilbud om, eller oppfordring til, en transaksjon i noe finansielt instrument. IG påtar seg intet ansvar for handlinger basert på disse kommentarene og for eventuelle konsekvenser som et resultat av dette. Ingen garanti gis for nøyaktigheten eller fullstendigheten av denne informasjonen. Personer som handler ut i fra denne informasjonen gjør det på egen risiko. Forskning gitt her tar ikke hensyn til spesifikke investeringsmål, finansiell situasjon og behov som angår den enkelte person som mottar dette. Denne informasjonen er ikke utarbeidet i samsvar med regelverket for investeringsanalyser, så derfor er denne informasjonen ansett å være markedsføringsmateriale. Selv om vi ikke er hindret i å handle i forkant av våre anbefalinger, ønsker vi ikke å dra nytte av dem før de blir levert til våre kunder. Se fullstendig disclaimer og kvartalsvis oppsummering.
I have been watching the developments in IPL very closely over the year. The quarterly numbers have been consistently below corresponding periods and the final fiscal year numbers look like putting a ruler through what has been a disappointing year.
Net income excluding material items came in at $298.4 million, which is a 25.6% contraction year-on-year, however it was ahead of the consensus estimate of $295.8 million. Sales contracted 2.3% over the year to $3.42 billion but again were ahead of the medium estimate of $3.34 billion. It’s pleasing to see IPL has stemmed the flow of losses.
As expected the pain was felt in the fertiliser business with earnings down 37.4% year-on-year to $169.7 million from $270.9 million the year before, it was also well below consensus expectations of $175.1 million. It is no surprise that the Australia Pacific Dyno division is the one suffering the most; down 29.3% over the year as India particularly bites into earnings.
Explosives were also lower, off 18.1%, however this was expected as contractual work in the US slowed as clearing and exploration requirements plateau. However, costs were well below expectations, at $31.2 million from $71.7 million a year earlier – the structural changes the company is undertaking seem to be working.
That coupled with the fact the company plans to restructure its corporate headquarters and business units to address the effects of soft fertilizer prices and the structurally high AUD, management believe an additional $20 million in savings over the next two years, of which $12 million will fall in FY14, can be found and should again provide structural tailwinds.
Other tailwinds the company may take advantage of over the FY14 are the possible falling AUD and improving conditions in the explosives business as the company looks to improve margins to offset the decline in consumption.
Having contracted 22% year-to-date, the fact IPL has beaten consensus should see a solid pop in the share price, and should see a clear break out of the two-standard deviation Bollinger bands it has been trading in.