FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February, 2003 (February 17, 2003)
Commission File Number: 0-15850
ANSELL LIMITED
(Translation of registrant's name into English)
Level 3, 678 Victoria Street, Richmond, Victoria 3121, Australia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F ___
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulations S-T Rule 101(b)(1): X
-
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes___ No X
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This Form 6-K/A is designated as incorporated by reference into the Form
F-3 Registration Statement filed with the Securities and Exchange Commission on
November 20, 1990 with file numbers 33-37752 and 33-37752-01, the Form F-3
Registration Statement filed with the Securities and Exchange Commission on
April 30, 1991 with file number 33-40228, the Form F-3 Registration Statement
filed with the Securities and Exchange Commission on October 31, 1994 with file
numbers 33-85802 and 33-85802-1, the Form S-8 Registration Statement filed with
the Securities and Exchange Commission with file number 33-18603, and the Form
F-3 Registration Statement filed with the Securities and Exchange Commission on
July 25, 1997 with file number 333-6472.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ANSELL LIMITED
(Registrant)
By: /s/ DAVID M. GRAHAM
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Name: DAVID M. GRAHAM
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Title: GROUP TREASURER
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Date: February 17, 2003
Attention ASX Company Announcements Platform.
Lodgement of Open Briefing.
[LOGO OF ANSELL] [LOGO]
corporatefile.com.au
Ansell Limited
Level 3
678 Victoria Street
Richmond VIC 3121
________________________________________________________________________________
Date of Lodgement: 17-Feb-2003
Title: Open Briefing. Ansell. CEO on Full Year Outlook
corporatefile.com.au
Ansell Limited recently reported net profit of US$10.8 million
(A$19.5 million) for the first half ended December 2002, compared
with a net loss of US$47.3 million (A$92.8 million) in the
previous corresponding period. EBITA from the core Healthcare
business was US$43.1 million (A$77.5 million), up 4 percent. You
remain committed to your target of double-digit EBITA growth for
Healthcare for the full year. What gives you confidence you can
achieve this level of earnings growth?
CEO Harry Boon
There are three things: revenue growth, cost reduction and forex
benefits.
On growth, the HyFlex family of products is continuing to grow
rapidly and in surgeons' gloves, we're now supplying from both
Shah Alam and Columbo into the US and Europe. We're experiencing
strong demand and firm prices for surgeons' gloves. We're also
continuing to gain global market share in condoms at both the
retail level and in the government tender business.
On the cost side, we continue to drive down our general and
administrative costs, plus we expect our manufacturing transfers
to Asia and Mexico to contribute more to the second half. I'm
referring in particular to the surgeons' glove plants in Malaysia
and Sri Lanka, the knitted glove facility in Mexico, and the
critical environment glove plant in India.
In relation to foreign exchange, the euro versus the US dollar is
the critical exchange rate for us. A significant proportion of
our second-half euro income is hedged at rates better than the
first half.
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corporatefile.com.au
Unallocated corporate costs fell to US$6.7 million in the first
half from US$8.0 million previously. These costs included US$2.9
million in start-up costs relating to Operation Full Potential.
Can you quantify the contribution of Operation Full Potential to
first-half earnings and the expected cost/contribution to
full-year earnings?
CEO Harry Boon
Operation Full Potential is a three-year programme across 13
different initiatives designed to improve sales, reduce costs and
increase asset efficiency. Benefits from the programme will flow
to earnings over time. Operation Full Potential will be a major
contributor to delivering the three-year commitment we've made.
corporatefile.com.au
The Professional Healthcare business reported EBITA of US$15.9
million in the first half, down 31 percent, on sales of US$124.7
million, down 12 percent. The business was negatively impacted by
slower than expected production at the Shah Alam plant in
Malaysia, and later by a detention order from the US Food and
Drug Administration (FDA) on product from that plant. To what
extent might the disruption of supply have a longer-term impact
on customer relationships in the US surgeons' glove market?
CEO Harry Boon
At this point, it's difficult to predict whether there'll be any
long-term impact. It's clear some customers couldn't wait for us
to resume supply, yet demand for our surgeons' gloves remains
very strong. In fact, we're currently air-freighting product.
corporatefile.com.au
Professional Healthcare was also affected by continuing price
competition in the medical examination glove market. Is it
realistic to expect any improvement in earnings from this sector
in an environment of chronic oversupply?
CEO Harry Boon
In terms of hospital examination gloves, there is oversupply, it
is a commoditised market and the price pressure is definitely
there. Offsetting that, we're seeing for the first time some
serious resistance by Asian manufacturers to further price
erosion. That suggests we might be nearing the floor in this
market.
It's also important to say we're not suffering price erosion in
surgeons' gloves.
corporatefile.com.au
What's the outlook for revenue and earnings from Professional
Healthcare in the current half ending June?
CEO Harry Boon
We feel good about the second half in Professional. In relation
to surgical gloves, it's a matter of getting our supply back on
line over the current quarter and really driving our sales
channels in the fourth quarter. I'm confident we can do this
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because demand for our product continues to be strong and prices
are holding firm.
corporatefile.com.au
Occupational Healthcare booked EBITA of US$15.0 million, up 44
percent, on revenue of US$177.4 million, up 10 percent. Sales of
HyFlex gloves rose 51 percent to US$22.9 million. To what extent
did the improved earnings reflect the contribution of the
higher-growth HyFlex products and to what extent did they reflect
other factors?
CEO Harry Boon
The issues that were holding back our margins in Occupational
are being systematically addressed. This resulted in an
improvement of 2 percentage points in EBITA margin to 8.5
percent in the first half.
We've continued to grow market share in all three regions of the
world in Occupational - and across all major products not just in
the HyFlex range. We've also reduced costs with the move of
production to Asia.
corporatefile.com.au
Is growth in HyFlex sales sustainable going forward given the
impending expiry of Ansell's patent relating to this product?
CEO Harry Boon
We think it is. Demand is still growing and we're releasing new
HyFlex variants that will open up new markets for us.
We have first mover advantage. We've got the HyFlex brand
established, the distribution established and the business
relationships established.
corporatefile.com.au
What are your earnings expectations for Occupational Healthcare
in the current half?
CEO Harry Boon
We believe the second half will be stronger than the first for
Occupational.
We're in the process of ramping up our knitting operations in
Salvarcar, Mexico, and the operational issues are being resolved.
In the second half, we expect to start seeing the benefits of the
lower cost base as the facility increases production.
We'll also benefit from the start-up in Bangalore, India, of our
critical environment glove production, which has been relocated
from Troy in the US.
corporatefi1e.com.au
The Consumer Healthcare business grew EBITA 54 percent to
US$12.2 million on sales growth of 9 percent. What's the outlook
for the business over the remainder of the year?
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CEO Harry Boon
We're steadily increasing market share in condoms - in the
retail, private label and public tender markets. Earnings are
benefitting from lower costs as we generate economies of scale
from our production bases in Asia.
For example, we recently won a 12-month, US$6 million condom
supply contract with the government of Brazil, funded by the
World Bank. As the world fight against HIV/AIDS intensifies, with
efforts such as the new US aid initiative in Africa, we'd expect
to participate in any increased condom requirement.
corporatefi1e.com.au
Ansell's net debt fell to US$176.4 million at the end of the
first half, down from US$206.8 million at the end of June 2002,
and gearing fell to 25.7 percent from 29.5 percent. Interest
cover increased to 5.0 times from 2.3 times in the previous first
half. What do you see as an appropriate gearing level for the
company?
CFO Rustom Jilla
The board has announced a review of our capital management
strategy to be completed over the coming months.
corporatefile.com.au
In the first half, Ansell accelerated the recovery of deferred
tax assets held on the balance sheet, recognising US$4.9 million
as a non-cash tax expense and increasing the effective tax rate
to 44.7 percent. What is the expected tax rate for the full year
and when might you begin to recognise some of the US income tax
losses, totalling about US$280 million, held off balance sheet?
CFO Rustom Jilla
We expect the book tax rate for the remaining six months to be
under 20 percent.
This is essentially in line with the first-half rate after
stripping out the recovery of deferred tax assets.
In relation to off balance sheet tax assets, we began to use some
of these late in the first half, and in the second half this will
continue. We'll be able to continue using these off balance sheet
assets for some years.
corporatefile.com.au
In your mid-range forecasts, you expect EBITA of US$115 million
in 2005, a 50 percent increase from the 2001 result of $US77
million. This assumes substantial cost reduction and margin
retention in a highly competitive industry. What are the current
indications that you'll be able to attain the projected margin
improvements and achieve the 2005 goal?
CEO Harry Boon
We're laying solid foundations for the work ahead. Already, we've
shown we can lift our margins in Occupational and Consumer, and
that we have the initiatives in place to expand those margins.
The fall in Professional margins reflected the supply disruption
in surgeons' gloves and we believe we have recovery well in hand.
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We also have confidence that initiatives like the Occupational
Value Proposition - under which we provide a hand injury
"solution" rather than a product - will take us into a higher
league in value add. We're expecting to announce the first
contract under our Occupational Value Proposition in the second
half. And that will be a big driver for us in the future.
corporatefi1e.com.au
Thank you Harry and Rustom.
For previous Open Briefings with Ansell, visit
www.corporatefi1e.com.au
For more information about Ansell, visit www.ansell.com
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