Ansell issues a profit warning and its shares are tanking

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Condom maker Ansell posted a 20% rise in full year net profit to $188 million but says future earnings are expected to be weakened by currency movements.

Sales for the year to the end of June increased 3.5% to $1.645 billion.

CEO Magnus Nicoli says unfavourable foreign exchange movements and disappointing economic performances in many key developed and emerging markets combined in the second half.

“While we expect overall improvement in demand in most major markets in 2016, currencies are presenting a significant headwind,” he says.

Currency movements are expected to drag down revenue by $55 million in 2016.

The company declared a full year dividend up 10% to 43 cents.

Ansell was trading down more than 19% to $19.90.

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