Ansell withstands latex price hike with surging profits

Melbourne, Australia - Condom and rubber glove maker Ansell posted a strong net profit result for the 2006 fiscal year despite pressure from rising latex prices.

The Australian manufacturer reported a 113 percent surge in net profit to A$116 million (€69 million) for the year ending 30 June and a 5 percent rise in yearly sales to A$1081 million.

The company would have suffered a 9.5 percent drop in yearly earnings, however, if not for A$112 million realised from its sale of South Pacific Tyres in January.

''The unprecedented increase in raw material costs, in particular natural rubber latex, put substantial pressure on earnings,'' Ansell chairman Peter Barnes said.

Ansell chief executive Doug Tough said the impact of a 73 percent increase in natural rubber latex prices during fiscal 2006 could not be recouped through price increases or productivity improvements.

''This achievement in meeting our commitments despite the volatile world commodity markets reflects the benefits of our diverse regional and business portfolios,'' Tough said.

''More than 50 percent of our products contain no latex and so we were able to withstand relatively well the unprecedented cost impacts on our latex-containing products.''