Supermax projects 15% to 20% annual earnings growth (7106)

by **hlk** Wed 22 Aug 2012, 19:07

KUALA LUMPUR: World's second largest rubber gloves maker,Supermax Corporation Bhd foresees a healthy 15% to 20% earnings growth per annum for the next five years.
Its executive chairman and group managing director, Datuk Seri Stanley Thai said the projection was based on the full automation of its operations, better business opportunities and aggressive marketing and distribution activities worldwide.
Supermax has invested RM65.8mil to complete the automation of all its manufacturing and processing at all its plants within the next 12 months.
"We will be saving up to 60% of the existing labour cost, which reflects an approximate cost saving of RM27mil per year on labour cost," Thai said at a media briefing on Wednesday.
The savings will result in higher profits for Supermax from year 2013.
Thai said Supermax will continue to focus on what it does best - manufacturing, distributing and marketing of gloves, and continue to drive the growth of its distribution operations in Germany, United States, Canada, Brazil and the UK.
Currently, the US and Canada constitute some 40% of Supermax's sales, while Europe contributes 28%, South America (15%), Asia (7%), and Africa/Middle East (6%) and Central America (4%) respectively.
Supermax also recently started work on its new, national distribution headquarters in Chicago, United States which will enable the group to have additional capacity to accommodate its business growth in the US market.
It will also consolidate the existing two distribution units there under one roof for efficiency purposes.
Following this, Supermax expects to be able to carry new product lines to cater to the dental, pharmaceutical, scientific laboratories and medical as well as hospital markets.
Thai also disclosed that the gloves maker had in-line a series of new and innovative products to be marketed worldwide.
The details can however be revealed only after the company secures the patent rights on the products from the United States Patent and Trademark Office, he added. - Bernama