Melbourne-based diversified manufacturer Austrim Nylex Ltd. has told shareholders not to expect dividends as it struggles under the weight of a large debt.
In the fiscal year ended June 30, the Nylex Corp. Ltd. division accounted for 20 percent of the parent's total sales of A$1 billion (US$560.7 million). However, Austrim Nylex reported a net loss after tax of A$152.8 million (US$85.7 million) for the year and had debt of A$361 million (US$202.4 million).
Chairman Dick Nitto said: ``In spite of cash-flow improvements to our operations, returned funds were not sufficient to declare a dividend. Shareholders have not seen any sustainable appreciation of share price and, in most instances, the decline in the group's share price has only increased our sizable losses.''
Jonathan Ling, executive general manager of the Nylex division, said the unit's outlook is becoming more positive.
``Major restructuring is essentially complete, but we will look at ways to grow and move forward,'' he said.
Meantime, the company is closing a rotomolding plant in Lyndhurst, Australia, and is moving the work to a plant in Seaford, Australia.
Nitto said Austrim management is ``making steady progress on critical issues,'' such as selling noncore businesses, restructuring its core business, and managing debt reduction aggressively.
Glen Casey, who was appointed Austrim's chief operating officer in October, will step up to managing director when Peter Crowley leaves in February.
Austrim's Nylex Corp. Ltd. division, formerly called the plastic products division, has five units: consumer products, films and fabrics, sheet, hose and mesh, and materials handling. It has an extensive range of processing capabilities from calendering and extrusion to rotational, injection and blow molding. The division manufactures and distributes polyethylene, polystyrene and polypropylene products for the industrial, automotive and consumer markets.