Prices set to rise as glove makers protect profit margin

Prices set to rise as glove makers protect profit margin

By Ooi Tee Ching
Published: 2010/11/10


THE average selling price of rubber gloves, at US$30 (RM93) per 1,000 pieces, is set to trend higher because manufacturers need to protect profit margin, Supermax Corp said.

"We are quoting selling prices more frequently. We do it on a weekly basis to better match the volatile currency movement and rising raw material costs. We need to preserve our profit margin," said executive chairman and group managing director Datuk Seri Stanley Thai.

In the recent quarterly reporting season of March to June, many rubber glove manufacturers suffered lower earnings from slower than expected cost pass-through of rising latex prices and weakening US dollar.

Yesterday, latex-in-bulk rose 12 sen to close at RM8.42 a kg at the Malaysian Rubber Exchange.

Rising rubber prices bode well for rubber tappers.

Rural and Regional Development Minister Datuk Seri Shafie Apdal had reportedly said that with rubber prices at an all-time high, smallholders were reaping a monthly gross income of RM4,000.

Thai acknowledged rubber tappers' good fortune and noted manufacturers' extra security measures in securing latex supply.

"At current pricing, our daily supply of four tankers of latex is worth RM1 million on the road. Latex is very precious. These tankers are fully-insured against hijacks," he told reporters in Kuala Lumpur yesterday.

Asked if latex supply is somewhat hampered by floods in southern Thailand, he said: "The flood might have affected dry rubber supply at low-lying warehouses but there's no supply disruption for wet latex as these are stored in raised tankers."

Thai revealed that costlier natural rubber latex had prompted many rubber glovemakers to switch a bigger portion of their production lines to make synthetic rubber gloves.

Thai said Supermax will churn out more powder-free nitrile gloves.

"Nitrile gloves used to make up a quarter of our total output. We're raising it to be a third," he said.

On fuel supply, Thai said rubber glovemakers had, again, appealed to the government to allocate more natural gas quota to them.

"We recently met with Pemandu (Performance Management & Delivery Unit) for the National Key Economic Area on rubber sector and highlighted some infrastructure gaps. The industry needs another 100 million mmBtu/hourof natural gas," he added.


Read more: Prices set to rise as glove makers protect profit margin http://www.btimes.com.my/Current_News/BTIMES/articles/rub09/Article/#ixzz14tQpZDua

----


Hartalega gains on Q2 net income jump
Published: 2010/11/10

Hartalega Holdings Bhd, a Malaysian rubber-glove maker, rose to its highest level in more than three months in Kuala Lumpur trading after posting a 49 per cent jump in second-quarter net income.

Its shares gained 1.3 per cent to RM5.60 at 9:10 a.m. local time, set for their highest close since July 19. -- Bloomberg



Read more: Hartalega gains on Q2 net income jump http://www.btimes.com.my/Current_News/BTIMES/articles/20101110092520/Article/index_html#ixzz14tRxFudG

----


Latexx Q3 profit rises 41.3pc
Published: 2010/11/10

Latexx Partners Bhd's pre-tax profit rose 41.3 per cent to RM20.17 million for the third quarter ended Sept 30, 2010 from RM14.28 million in the same quarter last year.

Its revenue jumped 60.7 per cent to RM129.88 million from RM80.84 million previously.

For the first nine months ended Sept 30, 2010, Latexx''s pre-tax profit surged 93.9 per cent to RM67.53 million from RM34.83 million in the same period of 2009.

The company's revenue increased 73.1 per cent to RM390.53 million from RM225.59 million previously. - Bernama



Read more: Latexx Q3 profit rises 41.3pc http://www.btimes.com.my/Current_News/BTIMES/articles/20101110170400/Article/index_html#ixzz14tSABzaC