Another company lifting dividend yesterday was Ansell (ANN), the condom and glove maker, which reported a 14.9% lift in earnings for the six months to December.
The company declared an unfranked dividend of 17 USc a share, to be paid on March 25.
The dividend is 1c higher than the previous corresponding period which was paid in Australian currency.
The company has changed its reporting to US dollars (as has BHP Billiton, Rio Tinto, CSL and QBE, for example) from this reporting period.
That means the Australian dollar value of the higher dividend is well over 18 Ac a share, an effective rise of 12.5% or more, thanks to the weaker Aussie dollar.
Ansell joins a growing list of companies (more than 70% of the ASX 200 to have reported which have boosted dividends for the six months or year to December 31).
Ansell reported a net profit of $US$65.6 million ($72.4 million).
Revenue rose 9% to $US703.6 million in the six months ended December 31. Earnings before interest and tax jumped 20% to $US82.7 million
The company maintained guidance of full year earnings per share in the range of $US1.10 to $US1.16.
Excluding the dilutive (extra shares issued) effect of the share issue in December to help fund the $US615 million BarrierSafe acquisition, EPS rose 15 % to US50.2¢. Reported EPS rose 14% to US49.6c.
ANN 1Y – Ansell raises dividend
Ansell chief executive Magnus Nicolin said in a statement yesterday that organic growth in Ansell’s three units that sell to businesses, medical, industrial and specialty markets, approached 4% in the second quarter and was 2.6% for the interim period.
"A moderate improvement in economic conditions contributed to growth rates, although mostly offset by significant economic weakness in select markets such as Australia, Russia and Turkey," Mr Nicolin said in a statement.
Mr Nicolin said sales of products less than three years old were up 20% on the first half of the previous financial year.
"However, these numbers are still below our targeted growth rate and further enhancements to the "go to market" element of innovation are now being implemented," he said.
Despite the solid report and higher dividend, Ansell shares fell nearly $1, or 5% to $18.31.
The shares fell after the company pointed to the weak performance in Australia, especially manufacturing (which isn’t new news).
Australia accounts for just 5% of Ansell’s sales, and yet the shares fell 5% on the comments about the weakness in this country – a slightly illogical reaction.
Up to last Friday the shares had risen 24% over the past year.
