BHP Billiton Net Rises, QBE Insurance Net Declines

Marcus Jacob
19 Aug, 2014
New York City

Australian indexes advanced and investors focused on the latest earnings announcements. After the close, BHP Billiton reported annual revenues increased 1.9% and net earnings surged 23%. Insurance Australia Group net soared 59% on lower than expected costs.

[R]5:00 PM Sydney, Australia – Australian indexes advanced and investors focused on the latest earnings announcements. After the close, BHP Billiton reported annual revenues increased 1.9% and net earnings surged 23%. Insurance Australia Group net soared 59% on lower than expected costs.[/R]

Australian market indexes advanced after investors focused on a slew of earnings announcements.

QBE Insurance reported 18% decline in earnings and Transpacific Industries returned to profitability. Toll Holdings reported higher than expected earnings and Amcor Limited reported 25% increase in full-year earnings. Arrium Limited swung to net profit.

After the close, BHP Billiton reported 23% jump in earnings.

The latest minutes of meeting showed headwinds in the labor market and uneven economic growth in Australia. However, the policy committee decided to hold rates in the view of strong housing market and weakening momentum in the GDP.

Australian dollar closed at 93.33 U.S. cents and on the stock market turnover climbed to 853 million shares worth $5.9 billion.

ASX 200 index increased 36.70 or 0.7% to 5,623.80 and the broader All Ordinaries gained 37.80 to 5,618.40.

Stocks in Review

BHP Billiton Limited increased 1.3% to $39.68 after the diversified natural resources company reported revenue in the year ending in June rose 1.9% to $67.21 billion from $65.95 billion a year ago period. The company reports all its financial results in the U.S. dollar.

Net income in the year soared 23.3% to $13.83 billion compared to $11.22 billion and diluted earnings per share jumped to $2.59 from $2.10 a year earlier.

The miner said net debt in the year fell to $25.8 billion, a decrease of $1.7 billion.

Insurance Australia Group Limited rose 0.5% to $6.29 after the insurance company stated gross written premium in the year ending in June jumped 2.9% to $9.78 billion from $9.50 billion a year ago period.

Profit in the year climbed 59% to $1.23 billion compared to $776 million and soared to 53.62 cents from 36.44 cents a year earlier.

Toll Holdings Limited climbed 5% to $5.67 after the transport and logistics service provider said revenue in the year ending in June increased 1.1% to $8.81 billion from $8.72 billion a year ago period.

Net income in the year surged 219.6% to $293.1 million compared to $91.7 million and earnings per share slipped to 41.1 cents from 41.3 cents a year earlier.