Ansell reduces full year guidance for FY16 ahead of next week's 1H16 results

Late today Ansell released revised FY16 EPS guidance to fall within the range of US$0.95 to US$1.10. Guidance provided at its 2015 AGM was for EPS to fall within the range of US$1.05 to US$1.20. A few details of 1H16 results: Overall sales of approximately US$785 million are down 7% on the pcp in actual currency. Anticipated FX hedging program gains of US$10 million didn't materialise. What Ansell describes as 'short term operations variations' produced higher costs in the Medical and Industrial GBUs reducing EBIT for these GBUs by US$10 million. Cost are being addressed and the company expects these short term operations variations to be resolved by the end of FY16. It expects a more normal seasonal sales pattern in 2H16, with 51%-52% of full sales recorded in the second half. That said, Ansell indicates its January 2016 sales were lower than anticipated, a situation said to be a result of customers adjusting inventory levels in response to the weaker external economic environment. Ansell is due to report its half-yearly results on Monday 8 February 2016.