Business Description:
Ansell Limited (ANN) is a global provider in protection solutions, with operations in the Americas, Europe and Asia. ANN designs, develops, manufactures and markets a wide range of surgical, examination, industrial and household gloves, protective clothing and condoms. ANN’s operations consist of four global business units (GBU) including medical, industrial, new verticals and sexual wellness GBUs.

Strategy Analysis:
ANN's strategy is focused developing new and innovative products, developing new channels and growing market share. Cost cutting, manufacturing rationalisations, and shifting its portfolio of products towards higher margin items aim to offset input cost pressures. Relocation of manufacturing from the US to Mexico and South East Asia enables ANN to compete at the lowest end of the cost curve. ANN is shifting away from producing commoditised products with no pricing power to producing patentable products which avoid the commodity trap. Revenue growth is typically modest, in response ANN looks for new emerging markets, such as China and Eastern Europe for sales. ANN is also mindful of the necessity to invest in research and development in order to develop more patentable products, such as the highly successful Hyflex range. Ansell reported NPAT up 2.8% to $122.7m for the year ended 30 June 2011. Revenues from ordinary activities were $1.23bn, down 0.6% from last year. Diluted EPS was 92.3 cents compared to 88.8 cents last year. Net operating cash flow was $129.1m compared to $190.8m last year. The final dividend declared was 19 cents, taking the full year dividend to 33 cents compared with 30.5 cents last year.