Ansell shares plummet on glove glut, earnings warning

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The maker of safety equipment flagged job cuts and major IT spending.

“This shift happened very, very quickly,” Ansell chief executive Neil Salmon said on Tuesday.were pummelled 14 per cent in Tuesday trading, down $4.01 to $23.76. The company also flagged job cuts among its 14,000 strong workforce and the implementation of new technology systems to improve results.

Among the changes planned for 2024 include streamlining the company’s organisational structure and cutting manufacturing employees amid slowing production while increasing automation – although Ansell refused to discuss details. It would also bring in more enterprise resource planning software over the next three years.

Those distributors are now saying they have “plenty of product, and now I can get it from several people, and now I’m concerned about economic conditions”, he concluded. The divisions are part of Ansell’s healthcare division, which contributed $US1.19 billion in revenue in the 2022 financial year, with surgical items accounting for almost one-third of that.

Mr Salmon, who took the top job in 2021 and whose take-home pay was $US1.6 million in 2022, said he was “not satisfied with the short-term earnings trajectory of the company, but I am pleased with the underlying development of our business”.

 

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