Australia's Ansell jumps to 19-month high on earnings beat, job cuts
Aug 20 (Reuters) -Shares of Ansell ANN.AX rose more than 7% on Tuesday to hit their highest in 19 months, after the Australian glove maker reported a smaller-than-expected fall in annual earnings and said it reduced 10% of its global workforce in fiscal 2024.
The stock climbed as much as 7.7% to A$29.450 by 0353 GMT, its highest since Jan. 23, 2023, and was on track for its best session since April 9.
Ansell's annual net profit attributable (NPAT) fell more than 48% to $76.5 million, but was ahead of Citi's estimate of $68 million. At $1.62 billion, sales were however in line with Citi's projection.
The company attributed the profit fall to weak performance at its healthcare segment, which accounts for more than 50% of total sales.
The Victoria-based company said it cut 10% of its staff, or 1,330 employees, in the 2024 financial year as a result of structural changes at the organisation.
Ansell's adjusted NPAT fell to $131.5 million from $145.6 million a year ago, but was higher than $114.32 million, according to estimates compiled by LSEG. It also beat the Citi estimate of $121 million.
Ansell, whose products are used by healthcare workers among others, said "end-market conditions are anticipated to be broadly neutral in FY25."
The company declared a final dividend of 21.90 US cents per share, down from 25.80 cents in the previous year.
Reporting by Rajasik Mukherjee; Editing by Subhranshu Sahu
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