Ansell Defies Downturn with Rising Coronavirus Demand (ASX:ANN)

The share price of Ansell Ltd [ASX:ANN] is surging today. Up 15.5% at time of writing.

As a manufacturer of medical and industrial equipment, Ansell is helping fight the coronavirus. Producing all manner of protective gear, such as surgical gloves, for key personnel.

And right now, demand for that gear is through the roof…

Demand keeps guidance in check

For many listed companies, forecasts are well and truly out the window.

FY20 will forever have an asterisk next to it, thanks to this virus-induced downturn.

Ansell is one of the few to buck the trend. Today they were fortunate enough to declare that their earnings are still on target. Propped up by the aforementioned demand.

However, it won’t be a record result either. Restrictions on exports as well as low growth globally will prove challenging. At least in the short term.

Long term this virus is proving just how valuable companies like Ansell are. Emboldening them to explore diversification of their own business to new regions. As they noted in today’s announcement:

The Ansell teams are working tirelessly to maximize output including making selective investments in new capacity and by leveraging manufacturing locations that are not affected and we expect to be able to continue to ship large quantities of product to key markets.’

It’s a smart move from a company that has found itself in the right place at the right time.

Pandemic prepared

What will be interesting to see is how long this demand will linger. Obviously, you’d expect things to settle down again once things become more contained.

However, the lingering effects of this virus could last far longer. Especially from a psychological perspective.

Cleanliness could very well be a long-term trend following this outbreak.

Time will tell.

For now though, Ansell will simply be happy to meet expectations. Proving once again that investors can make money even during a crisis.

In fact, we’ve got a full investor survival strategy guide. Offering insight into how you can not only protect, but potentially grow your wealth right now. What we’ve dubbed ‘The Coronavirus Portfolio’. You can get all the details, for free, right here.

Regards,

Ryan Clarkson-ledward,
For Money Morning


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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