BHP Billiton Net Soars 86%; Glencore Bids for Minara

Marcus Jacob
24 Aug, 2011
New York City

Stocks in Australia edged lower as metals and oil prices hovered near recent highs. BHP Billiton reported fiscal year revenues increased 36% and net soared 86% on a strong demand from Asian economies. Pacific Brands issued a cautious outlook. Qantas annual earnings were ahead of expectations.

[R]4:30 PM Sydney – Stocks in Australia edged lower as metals and oil prices hovered near recent highs. BHP Billiton reported fiscal year revenues increased 36% and net soared 86% on a strong demand from Asian economies. Pacific Brands issued a cautious outlook. Qantas annual earnings were ahead of expectations.[/R]

The Australian stocks closed lower as investors digested a flood of earnings. BHP Billiton reported a record earnings and Macarthur Coal, Qantas and Pacific Brands reported better than expected earnings.

The ASX 200 index declined 5.8 or 0.1% to 4,167.6 and All Ordinaries index decreased 4.10 or 0.1% to 4,235.70.

The Australian dollar decreased 0.3% to US$1.049.

In trading, turnover increased to 2.5 billion shares worth $5.4 billion with 529 stocks rising, 505 declining and 346 unchanged.

Stock Movers

BHP Billiton Ltd unchanged at $38.21 and Rio Tinto fell $1.17 to $69.83. Newcrest Mining Ltd decreased $1.70 to $38.70.

BHP Billiton reported record sales and earnings for the year. The financial results reported in the U.S. dollar reflected a strong demand from China and Asian markets and the mining company reported record production in four commodities and its ten operations.

BHP Billiton reported record annual revenue of $71.74 billion, a 36% increase from a year ago of $52.8 billion. The net income in the year surged to $24 billion and underlying net before interest and taxes surged to $31.98 billion.

Profit for the year increased 85.9% to $23.65 billion or 426.9 cents per share versus $12.72 billion or 227.8 cents per share a year ago. Operating cash flow increased to $30.1 billion.

Minara Resources soared 37% to 87 cents after the nickel miner received an offer to buy the remaining stake in the company controlled by Glencore. The Swiss mining conglomerate offered to 87 cents a share for the 27% of the stake it does not control and valued the company at $1.02 billion.

Commonwealth Bank of Australia decreased 30 cents to $46.71 and National Australian Bank decreased $0.37 to $22.54. ANZ fell 13 cents to $19.60. Westpac fell 34 cents to $19.72.

Macarthur Coal increased 18 cents to $15.80 after it reported its full-year profit doubled to a record high.

Suncorp increased 40 cents or 5.5% to $7.59.

Qantas declined 2 cents to $1.52 after the airline reported annual net profit soared to $250 million. Revenues increased 8% to $14.9 billion and underlying pre-tax profit jumped to $552 million.

The company reported better than expected results at its discount carrier Jetstar and also in the freight business.

The operating profit before tax and interest increased to $228 million from $67 million a year ago.

Pacific Brands increased 9 cents to 72 cents after it reported a full-year loss of $132 million. The branded apparel maker reported net profit increased 14.5% to $103.4 million and sales declined 7% to $1.62 billion.

The company also recorded one-time charge of $235 million including $212 million write down of footwear and sports division and mattress and bedding division.

The underwear and hosiery unit’s operating earnings increased to $111.3 million and workwear unit’s earnings increased 19.3% to $49.9 million. Household goods division earnings soared 20% to $40.5 million.

The company announced additional 100 jobs cuts and guided “next 12 months don’t look any easy.”