Ansell shares rise on plan to offset US tariffs
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More news: Ansell shares lifted in early trading, having slumped more than 14% on Thursday, after the healthcare equipment manufacturer said it plans to "fully offset" new US tariffs through increased pricing on its products.
Shares were up 1.6% to $29.82 at 10:35am AEDT, making it the second best performing ASX 200 stock.
Ansell to raise prices to offset US tariffs after shares tank
The news: Healthcare equipment manufacturer Ansell said it plans to "fully offset the tariff increases through pricing", after its shares saw the biggest decline of any ASX 200 company following US President Donald Trump's "Liberation Day" tariffs announcement on Thursday.
The numbers: Ansell noted that around 43% of its revenue is generated in the US, with the majority of products sold in the country sourced from its own manufacturing facilities or third-party suppliers in Malaysia, Sri Lanka, Thailand, Vietnam and China.
No one country supplies more than 30% of its imports into the US, it said, with the largest exposures being to Malaysia and Sri Lanka.
On Thursday, the US announced a 24% tariff on products from Malaysia, and 44% duties on those from Sri Lanka. Thailand (36%), Vietnam (46%) and China (34%) were also among the hardest hit.
Ansell shares closed 14.3% lower on Thursday after the announcement, as UBS warned the company could be the healthcare company most impacted by the tariffs across its coverage.
The context: Ansell said it plans to fully offset the tariff increases through pricing. It noted that the "vast majority" of manufacturing across the industry is conducted in Asian countries that are now subject to US tariffs and that US industry manufacturing capacity for comparable hand and body protection products is "negligible".
The company said it expects the timing of tariff increases and its pricing adjustments to be "broadly similar" and reiterated its earnings guidance for the current financial year.
The source: ASX
