Dulux paints a positive picture for net profit
The company, which has shown resilience during the recent slowdown in new housing development, said it expected its ‘‘like for like’’ net profit in fiscal 2013 to be greater than the previous year’s $79.6 million.
It also announced it was entering the final stages of a lengthy takeover of Alesco, with Dulux now claiming a 90.1 per cent stake in the building supplier.
The company’s forecast profit excludes a number of events that affected the financial results of the current and previous year, such as the 2011 Queensland floods, its DGL Camel joint venture in Hong Kong and China, and the Alesco takeover.
Speaking at the company’s annual meeting, Dulux Group chief executive Patrick Houlihan told shareholders that sales had improved in all sections of the business, despite considerably softer conditions and new globally owned competitors.
‘‘After completing the first two months of the 2013 financial year, we are seeing positive sales growth, with all four business segments ahead of the same time last year,’’ he said.
‘‘Although we anticipate the short term outlook in our core markets to remain subdued, the business is well positioned.’’
Dulux Group owns 90.1 per cent of Alesco, which supplies garage doors and other building products for home renovation. It will now begin compulsory acquisition of the remaining shares.
The deal signals the closure of a drawn-out takeover process that began when Dulux made a hostile bid in May.
Frequently Asked Questions about this Article…
Dulux Group said it expects to lift its full‑year net profit in fiscal 2013, forecasting its 'like‑for‑like' net profit to be greater than the previous year’s $79.6 million.
Dulux told shareholders it has shown resilience during the slowdown in new housing development, with sales improving in all parts of the business and positive sales growth in the first two months of the 2013 financial year across all four business segments.
Dulux Group owns 90.1% of Alesco and has said it will begin compulsory acquisition of the remaining shares as it moves to close a lengthy takeover process.
Alesco supplies garage doors and other building products for home renovation, so the takeover extends Dulux’s exposure into a building‑supplier segment focused on home renovation products.
No — Dulux’s forecast excludes a number of items that affected current and prior year results, including the 2011 Queensland floods, its DGL Camel joint venture in Hong Kong and China, and the Alesco takeover.
Patrick Houlihan told shareholders that sales had improved in all sections of the business despite considerably softer conditions and the emergence of new globally‑owned competitors, and that the business is well positioned even if the short‑term outlook remains subdued.
The takeover has been drawn‑out and began when Dulux made a hostile bid in May; Dulux now says the process is in its final stages with a 90.1% holding claimed.
Dulux cautioned that the short‑term outlook in its core markets is likely to remain subdued, although the company says it is well positioned and has seen early positive sales growth in the 2013 financial year.
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