Stockwatch
Information current as at 31 October 2011
Profile: Ansell Limited (ANN)
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 business units including medical, industrial, new verticals and sexual wellness.
The Medical division manufactures and markets a wide range of hand protective solutions for healthcare professionals and patients alike. ANN has a wide range of medical gloves across antimicrobial, surgical, examination, dental, laboratory, and specialty operations.
The industrial division manufactures and markets hand and upper arm protective solutions for a wide spread of industrial applications. ANN provides gloves with three specific purposes including mechanical, chemical & liquid, and product protections across several industries.
The New Verticals division manufactures and markets high performance, application-specific gloves for industries such as Food, Services and Agriculture, Construction, Do-it-yourself, Janitorial/Sanitation, Military, First Responders, Household Goods and Auto Aftermarket.
The Sexual Wellness division manufactures and markets condoms and other personal products. Currently, ANN focuses on expanding the products to emerging markets of China, India, and Brazil, with the SKYN brand rolled out globally.
This month's stocks
- Commonwealth Bank Ltd (CBA) – Maintain BUY - CBA’s first quarter cash earnings of $1.75bn were slightly weak when compared to our forecast of $1.8bn. This update continues a succession of five quarterly results around $1.75bn, thereby highlighting the difficult operating conditions that banks are facing at present – combating margin headwinds and low growth with cost management. Nevertheless, we see CBA as well placed to deal with the macro headwinds and with the challenge of a new incoming CEO. We maintain our Buy recommendation.
- Brambles Ltd (BXB) – BUY – Pallet supplier Brambles reported solid revenue growth in the first quarter of 2012 across its pallet, reusable plastic containers (RPC) and container divisions. Pallet revenue was supported by expansion in emerging markets. We believe emerging markets represent Brambles most attractive long-term opportunity, with CHEP to benefit from a first mover advantage, low levels of competition and support from existing customers. We maintain our Buy recommendation.
- CSR Limited (CSR) – HOLD - Building products manufacturer CSR have reported their first half results, which were marginally above our expectations at a net profit of $50.6m. Conditions clearly remain challenging across the company’s various businesses, with the glass operation turning in a loss against last year's modest profit. The company advised full year net profit would be towards 'the lower end' of the current $82–100m consensus range, and has led us to downgrade our 2012 estimate by 7% to $87m. We maintain our Hold rating.
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