The Ansell Limited (ASX: ANN) share price is pushing higher on Wednesday.
The safety products company's shares were up as much as 5% to $37.17 at one stage this morning before fading.
At the time of writing, the Ansell share price is up 1% to $35.76.
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Why is the Ansell share price pushing higher?
This morning Ansell provided an update on its performance ahead of the release of its first half results next month.
According to the release, the increasing number of COVID-19 cases worldwide has led to a greater focus on protection against transmission. This has underpinned elevated demand for a number of its products across Exam/SU, Life Sciences, and Chemical Protective Clothing.
In addition to this, Ansell is experiencing strong market share gains in its Mechanical and Surgical segments.
And thanks to the implementation of efficiencies to increase output and its investment in increased production capacity at its own plants, management advised that it has been able to successfully and safely meet higher demand where others in the industry have struggled.
Another positive has been the company's ability to pass through price increases to offset higher costs from raw material and labour costs. This was particularly the case in the Exam/SU segment.
What is Ansell expecting to report in the first half?
For the six months ending 31 December, Ansell is expecting to deliver organic growth of +20% and unaudited earnings per share in the range of 81 cents to 84 cents. This represents an increase of 62% to 68% on the prior corresponding period.
And while it anticipates the higher demand for its products to continue for the remainder of FY 2021, it warned that there remain significant uncertainties given that COVID-19 continues to impact its manufacturing operations and supply chain.
Given these challenges and uncertainties, Ansell currently considers that its second half earnings are unlikely to be stronger than the first half. Though, this has been the case in prior years.
Management is busy working through the analysis of these matters and their potential impacts on the remainder of the year. It expects to be in a position to announce a revised FY 2021 earnings per share guidance when it releases its half year results in February.
This uncertainty appears to be what is holding the Ansell share price back this morning after its strong start.
