Economic weakness puts holes in Ansell February 14, 2013 ANSELL has disappointed investors with a 15 per cent hit to its first-half profit, announcing a share buyback to help underpin its shares. The company, which makes medical gloves and condoms, blamed currency woes, a slowdown in China and exposure to weak European markets for its poor performance. Ansell's net profit was $55 million in the six months to end-December, compared with $64.9 million in the previous corresponding period. Even as profits fell, the interim dividend increased by 1¢ a share to 16¢. The company's shares fell sharply on the result, closing down 5.7 per cent at $15.94. Chief executive Magnus Nicolin said three acquisitions in the first half meant that earnings would be more heavily weighted in the second half. "Overall ... sales were flat, mostly due to economic weakness," he said. However, he was tipping a stronger second half, helped by the launch of a range of new products and contributions from recent acquisitions. Analysts said the results were worrying for investors. "It's a fairly bleak first-half result, with the company's trading revenues not showing any growth," UBS analyst Andrew Goodsall said. The first half numbers don't set up a lot of confidence. Despite the reverse in first-half profits, Mr Nicolin was sticking to the company's recent full-year guidance of single percentage to low double-digit earnings per share growth. Ansell plans to buy back between 2 million and 3 million shares.