Australian Index Down 0.2%; Suncorp Net Falls 39%, Coca-Cola Amatil Net Up 11%

Marcus Jacob
23 Feb, 2011
New York City

Stocks in Australia declined but rebounded from the lows as the dollar gained. Crude oil surged for the third day and third week in a row as furor in Libya lead to more bloodshed. Suncorp Group first half net declined 39%. Coca-Cola Amatil annual net increased 11%.

[R]5:00 PM Sydney – Stocks in Australia declined but rebounded from the lows as the dollar gained. Crude oil surged for the third day and third week in a row as furor in Libya lead to more bloodshed. Suncorp Group first half net declined 39%. Coca-Cola Amatil annual net increased 11%.[/R]

The ASX 200 index decreased 10.8 or 0.2% to close at 4,845.90 and the All Ordinaries Index fell 11.70 or 0.24% to 4,935.60.

The Australian dollar rebounded to US$1.003 and crude oil increased $2.40 to 92.62 a barrel.

Coca-Cola Amatil Net Up 11%

Coca-Cola Amtil said 2010 net profit rose 11% to $497.3 million on revenues increase of 1.2% to $4.62 billion. Unit sales volume declined 0.8% to 550.8 million cases.

The beverage maker distributes soft drinks in Australia, New Zealand, Indonesia and Papua New Guinea.

The Australian business division’s earnings before interest and taxes rose 7.3% to $593 million and the New Zealand and Fiji division’s similar earnings fell 1.1% to $81.4 million. The earnings at Indonesia and Papua New Guinea earnings surged 21.4% to $75 million.

Fruit drinks and food services reported earnings before interest and taxes increased 1.4% to $94.3 million.

Suncorp Estimates Rat Hike

Suncorp Group reported first-half net declined 39% to $223 million from $364 million a year ago period. The insurance group also estimated costs from Queensland floods and other natural disasters in January between $750 million and $850 million.

Life insurance division posted profit decline of 42% in the period to $61 million and Suncorp Bank net declined to $110 million from $154 million on net interest margin of 1.83%.

Suncorp also said it is too early to estimate total damage cost for the latest earthquake in New Zealand and rates are expected to increase. The September earthquake resulted in 4,500 domestic claims and 2,000 commercial claims.

Stock Movers

Banks closed mixed. ANZ decreased 15 cents to $24.21 and Commonwealth Bank fell 2 cents to $53.19. NAB closed down 1 cent to $25.81 and Westpac declined 4 cents to $23.66.

Energy and resources linked stocks generally closed higher. BHP Billiton decreased 1 cent to close at $46.57 and Rio Tinto decreased 14 cents to $84.96.

Woodside Petroleum decreased 16 cents to $42.48 and Oil Search fell 7 cents to $6.94.

Suncorp Group increased 2 cents to $8.60 after it reported 39% decline in first-half profit.

Woolworths declined 16 cents to $26.49 and Wesfarmers fell 18 cents to $32.97.

Asciano, rail and ports operator increased 2 cents to close at $1.74 after it reported first half net increased 18.7% to $93.9 million.