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Company: Ansell (ANN-AU)
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  Currency shifts will hurt Ansell.

The currencies in which Ansell sells products (US, Canada, Europe) are weakening relative to the countries where it manufactures its products (Malaysia). This movement cuts into profit margins as the company has to pay more for labor relative to its revenue priced in a reference currency market like the US dollar.

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  Hard to differentiate.

Ansell manufactures gloves. These products, especially examination gloves, are hard to differentiate from competitor brands. As such, they compete on price, which limits profit margin expansion.

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  Exposure to automotive and technology manufacturing industries.

Ansell's occupational division, accounting for half of 2008 revenue, sells gloves to automotive and technology manufacturers. These industries have contracted in face of the declining global economy. Weak industrial output weakens demand for Ansell's products in this division.

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