Higher Close in U.S. Stocks, Prudential Down

123jump.com Staff
07 Feb, 2008
New York City

U.S. stocks traded in a volatile manner with a lack of direction. Weak Januar retail sales, December existing home sales, and unemployment claims hurt trading sentiment. Prundetial Financial dropped 10% after it missed its earnings guidance and reported unrealized losses fromt the subprime and other credit related securities if $1.97 billion. European Central Bank left its rate unchanged and the Bank of England lowered its rate by 0.25%. Gold and oil advanced.

[R]4:00PM New York, 10:00PM Frankfurt, 8:00AM Sydney – U.S. stocks edged higher after January retail sells declined more than expected and earnings from Moody’s, Unilever, DR Horton, and Cisco.[/R]

European Markets

In London FTSE 100 Index closed lower 151.30 or 2.58% to 5,724.10, in Paris CAC 40 Index decreased 92.63 or 1.92% to close at 4,723.80 and in Frankfurt DAX index lower 113.79 or 1.66% to close at 6,733.72. In Zurich trading SMI decreased 145.44 or 1.92% to close at 7,420.01.

-The ECB left interest rates at 4.0% and the Bank of England lowered rates by 0.25% to 5.25%.

North American Markets indexes

Dow Jones Industrial Average gained 46.90 or 0.38% to a close of 12,247.00, S&P 500 closed up 10.46 or 0.79% to 1,336.91, and Nasdaq Composite Index traded up 14.28 or 0.63% to a close of 2,293.03.

In Toronto TSX Composite closed up 58.17 or 0.450% to close at 12,925.37.

Of the 30 stocks in Dow Jones Industrial Average, 20 closed higher, 10 closed lower, and none were unchanged.

Hewlett Packard led the gainers in the index with a rise of 3.9% followed by gains in Microsoft of 1.4%, in IBM of 1.2%, in AIG of 0.86%, and in Citigroup of 0.82%. JP Morgan Chase led the gainers in the index with a rise of 3.2%, in Home Depot of 2.7%, and in General Motors of 2.3%.

Of the stocks in S&P 500, 346 closed higher, 152 fell, and 2 were unchanged. Of the index stocks, 71 rose more than 3% and 13 stocks fell more than 3%.

EDS led the decliners in the index with a fall of 8.7% followed by losses in Prudential Financial of 7.7%, in JDS Uniphase of 5.3%, in Mylan Inc of 5.2%, and in Qwest Communication of 5.04%. Intercontinental Exchange led the gainers in the index with a rise of 12.5% followed by increases in Family Dollar of 11.7%, in Big Lots of 11%, and in Moody’s of 10.4%.

-January retail sales fell more than expected.
-Weekly unemployment claims fell 22,000 to 356,000 at the end of last week.

South American Markets Indexes

In Latin Markets Argentina led the decliners in the region with a loss of 1.39% followed by decreases in Venezuela of 0.87%, in Chile of 0.51%, and in Peru of 0.39%.

Mexico edged 0.53% higher in the region.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 107.91 or 0.82% to 13,207.15, in Australia ASX 200 index lower 12.70 or 0.23% to close 5,596.70. Hong Kong was closed today.

Thailand SET index closed lower 1.46 or 0.18% to 793.17. Sensex index in India decreased 612.60 or 3.36% to 17,526.93. Market of South Korea and Indonesia were closed today.

Bond Yields increased on 10-year U.S. bonds to 3.77% and on 30-year bonds gained to 4.52%.

-Japan foreign exchange reserves rose to a record high of $996 billion.

[R]Commodities, Metals, and Currencies[/R]

Crude oil added $0.86 to close at $88.00 per barrel for a front month contract, natural gas increased 16 cents to $8.15 per mBtu, and gasoline futures increased 2.71 cents to close at 226.70 cents per gallon.

Gold increased $6.50 in New York trading to close at $911.50 per ounce, silver closed up 26 cents to $16.81 per ounce, and copper for front month delivery increased 12.80 cents to 343.70 per pound and in London copper futures increased $204.00 to $7,340.00.

Dollar edged higher but traded near record lows against euro to $1.4482 and edged higher against yen to 107.51.


3:00PM New York, 8:00PM London- Bank of England reduces key rate by 0.25% to 5.25%. GlaxoSmithKline, Unilever, and Smith & Nephew earnings disappointed investors.[/R]

Stocks indexes in London finished sharply lower on negative earnings reports from Smith & Nephew, Unilever, and GlaxoSmithKline.

Market Sentiment

In London trading FTSE 100 stocks fell 2.58% or 151.3 to 5,724.10. Of the 102 FTSE 100 stocks 8 gained, 93 declined, and 1 was unchanged.

Stocks edged lower on the weakness in the U.S. January retail sales, interest rate cut, and weaker than expected earnings from several domestic companies.

In Paris CAC 40 Index decreased 92.63 or 1.92% to close at 4,723.80 and in Frankfurt DAX index lower 113.79 or 1.66% to close at 6,733.72. In Zurich trading SMI decreased 145.44 or 1.92% to close at 7,420.01.

The Bank of England Rate Cut

The Bank of England Monetary Policy Committee cut its benchmark interest rate by 0.25% to 5.25%, adding the prevalent market conditions are posing serious “downside risks to the outlook for inflation”.

The Bank of England lowered its rate by 0.25% to 5.25% after a decision by a nine-member governing body. The pound fell against the dollar and euro after the rate decision. Weak retail sales, falling housing prices, and consumer anxieties have all affected the economic outlook for UK. Interest rates in UK are still high among group of seven wealthiest nations and UK is likely to face weakening economy and rising inflation pressures in 2008.

According to the Bank, credit market conditions for households and businesses are tightening and consumer spending has slowed, while output growth is forecasted to further decline.

In the accompanying statement the BoE said, “CPI inflation, at 2.1% in December, was close to the 2% target, but higher energy and food prices are expected to raise inflation, possibly quite sharply, in the coming months,”

The Monetary Policy Committee also said that the lower level of the sterling will increase imports prices while inflation expectations remain high. Pound fell after the rate decision against euro and dollar.

ECB Holds Rate

The European Central Bank today held its key rate at 4% citing high upside risks in consumer prices as rising oil prices are forcing companies to pass on the cost to consumers

The European Central Bank left its rate unchanged at 4% after unanimous decision by governing council of 21 members. The President Jean Claude Trichet signaled that he will consider lowering rates if the economy show any sign of weakness. Euro fell after the rate decision. Before the meeting the ECB had signaled that it is worried that wage rise may fuel the inflation and market had interpreted it as a possible rise in interest rates.

The president in the press conference said that the spillover from the current instability in the financial market into the real economy is not known but the short term inflationary pressure must be contained from spilling over into the medium term economic outlook. The price stability remains the focus of the governing council, reiterated Trichet.


Statistical Classification of Northern Rock

The Office of National Statistics said today in a report that Northern Rock will be classified as a public financial corporation from October 9 2007.

However, the bank noted that this action must not be mistaken for nationalization of the troubled lender.

ONS said in a statement on its web site, “National Accounts classification is determined by control of ‘general corporate policy’, which does not always coincide with ownership. The decision is based on a judgment that the public sector has the power to control Northern Rock plc’s general corporate policy. This is largely due to powers that the Bank of England has taken as part of its secured lending facility arrangements through covenants in the loan agreements.”

Gainers and Losers

BG Group Plc led advancers in FTSE 100 index shares with a rise of 3.81% followed by rises in Smith & Nephew of 3.60%, in Carphone Warehouse of 1.14%, in Tullow Oil of 0.95%, and in Antofagasta of 0.89%.

BG Group Plc rose after the company announced today fourth quarter net income jumped 25% to £486 million.

Yell Group led decliners of the 102 FTSE 100 stocks with a decline of 15.23% followed by losses in Rolls-Royce Group of 10.21%, in Alliance & Leicester of 9.95%, in BT Group Plc of 9.80%, and in GlaxoSmithKline of 7.63%.

Rolls-Royce Group Plc declined after full-year profit fell by 39%.

Earnings Update

GlaxoSmithKline reported today that fourth quarter net income fell 10% to £1.06 billion. Earnings per share declined to 19.4 pence compared to 20.8 pence a year earlier. During the quarter Avardia sales plunged 55% to £130 million.

Smith & Nephew reported fourth quarter net income fell 26% to $222 million and revenue rose 25% to $967 million after the company acquired a Swiss company Plus Orthopedics Holdings. The company publishes its results in U.S. dollars and trades on the New York and London stock exchanges.


Group revenues in the year increased 21% to $3,369 million with particularly strong growth in orthopedic reconstruction. Reconstruction revenues were $1.240 billion for the year, benefiting particularly from hip resurfacing in the US and a recovery in US knee revenues in the fourth quarter.

Reported trading profit for the year was up 24% to $706 million with a 21.0% trading margin, 50 basis points higher than 2006 on the benefits of restructuring.

Under the two year share buy-back program of up to $1.5 billion announced last year we had bought back a total of 52 million shares at a cost of $640 million at the end of the year.

Unilever reported fourth quarter ending on December 2007 net revenue from continuing operations increased 2% to 9.89 billion euros, operating profit increased 3% to 1.097 billion, and net income declined 13% to 782 million euros. Net profit from total operations declined 63% to 787 million euros. Earnings per share from continuing operations were 25 euro cents.

For the full-year sales from continuing operations increased 1% to 40.187 billion euros, operating profit decreased 3% to 5.24 billion euros, net income increased 10% to 4.056 billion euros, and net income from total operations fell 18% to 4.136 billion euros. Earnings per share in the year rose 12% to 1.32 euros.

Throughout the year, sales growth averaged between 5.5% and with 6.1% in the fourth quarter. There has been an increasing contribution from higher pricing, 1.8% for the year and rising to 3.0% in the fourth quarter, in response to sharply higher commodity costs. The steady sales rise Europe continued, with 2.8% growth in the year. The fourth quarter was particularly strong, at 5.5%, against a weak quarter a year ago.

Cash flow from operating activities, at €5.2 billion, was €0.4 billion lower than in 2006 due to higher cash costs of restructuring and increased contributions to pension funding.

Return on invested capital was 12.7% in 2007. This represented an improvement from 11.5% in 2006, adjusted for the profit on the disposal of frozen foods.

[R]12:30 New York, 6:30 PM Frankfurt - European Rate Decisions[/R]

The European Central Bank left its rate unchanged at 4% after an unanimous decision by governing council of 21 members. The President Jean Claude Trichet signaled that he will consider lowering rates if the economy show any sign of weakness. Euro fell after the rate decision. Before the meeting the ECB had signaled that it is worried that wage rise may fuel the inflation and market had interpreted it as a possible rise in interest rates.

The president in the press conference said that the spillover from the current instability in the financial market into the real economy is not known but the short term inflationary pressure must be contained from spilling over into the medium term economic outlook. The price stability remains the focus of the governing council, reiterated Trichet.

He said that, “as the risk re-appraisal in the financial market” is going on its impact on the overall economy remains “highly uncertain”. He went on to add that Euro-are does not have major economic imbalances, corporate profitability is sustained, and employment remains at three-decade high. Labor force participation remains high and as a result consumption should sustain economic growth. He said that fundamentals of the Euro-economy are “sound.”

He also said that the global imbalances, rising oil and commodities prices, potential broader than currently experienced financial market developments, and other disorderly developments are likely to contribute to the downside risks to the economy. He urged corporations to resist from raising product prices and wages and said that this could be “avoided.”

He commented and urged to avoid the linking of wages to consumer price index rises, a direct hint to the labor leaders from asking for higher wages.

He said that annual M3 monetary growth, though moderated in December remains “vigorous”, increased 11% in 2007 and M1 money supply has moderated reflecting dampening effect of higher interest rates. He said that the underlying monetary expansion continues to be strong on the domestic loan expansion to private sector which grew at annual 11.1% in December.

Bank borrowing in Euro area from non-financial corporation remains “robust” and in December 2007 was 40.50% higher than a year ago. Financial turmoil so far has not “impaired” credit availability and credit worthiness to the corporations.

He pointed out that during 2001 and 2003 period higher market volatility led to the portfolio shifts into the monetary assets, but that seems to be not the case during the recent market volatility since August 2007.

Oil and food prices in recent months are significantly contributing to the inflation and the rising food price inflation is not likely to be stemmed in the near future but will moderate in the later part of 2008. He went on to say that “protracted period” of higher inflation is likely. He clarified that the current high food and energy prices are not likely to have an impact on the prices of other goods and wages. Wages are mostly dictated by capacity utilization and labor market conditions.

He urged various governments in the Euro region to keep the fiscal stability and resist the temptation to increase spending with corresponding rise in revenue and exhorted them to honor the fiscal pact of the union.

The Bank of England lowered its rate by 0.25% to 5.25% after a decision by a nine-member governing body. The pound fell against the dollar and euro after the rate decision. Weak retail sales, falling housing prices, and consumer anxieties have all affected the economic outlook for UK. Interest rates in UK are still high among group of seven wealthiest nations and UK is likely to face weakening economy and rising inflation pressures in 2008.


[R]11:30AM New York – U.S. stocks traded in a tight range after weekly unemployment claims gained, January retail sales dropped and oil dropped.[/R]

U.S. averages fell in the first thirty minutes of trading after retailers reported January same store sales, cautious outlook from Cisco, and higher than expected unemployment claims.

January Retail Sales

Same store sales in January fell more than expected by most analysts. Wal-Mart reported same store sales increased 0.5% in the month, lower than the company’s guidance of 2%. Sales at Wal-Mart stores fell 0.2% and at Sam’ Club increased 2.1%. For the fiscal year, same-store sales at U.S. locations rose 1.4%, lowest growth in the last thirty years of data tracking at stores.

Target sales in January fell 1.1%.

Retailers are bracing for one of the toughest years as consumers tackle rising energy and gasoline prices, falling home values, tighter credit conditions, and stagnant wages.

Costco Wholesale Corp, reported 7% rise in January same store sales across the company but sales increased 5% at domestic locations, only 3% when gasoline sales are excluded, and currency adjusted gain of 9% at international locations.

Department stores lowered prices on several products at mall based locations to attract buyers and rev up the gift card spending. However consumers kept their spending in check.

Apparel retailers reported drop in sales as customers avoid discretionary purchases. J C Penney sales declined 1.9%, sales at Limited dropped 8.1%, at Macy’s fell 7.1%, and at Gap fell 2%. Saks bucked the trend and reported 4.1% rise in sales.


Weekly Unemployment Claims

In the week ending Feb. 2, the advance figure for seasonally adjusted initial claims was 356,000, a decrease of 22,000 from the previous week''s revised figure of 378,000. The 4-week moving average was 335,000, an increase of 8,500 from the previous week''s revised average of 326,500.

The advance number of actual initial claims under state programs, unadjusted, totaled 379,507 in the week ending Feb. 2, an increase of 9,563 from the previous week. There were 339,018 initial claims in the comparable week in 2007.

Earnings News

Moody’s ((MCO)) reported revenue of $504.9 million for the three months ended December 31, 2007, a decrease of 14% from $590.0 million for the same quarter of 2006. Operating income was $212.1 million and diluted earnings per share were $0.49, which included a restructuring charge of $47.8 million or $0.11 per share. Excluding the restructuring charge in 2007 and the gain from a building sale in 2006, operating income of $259.9 million declined 14% from $302.7 million in the year-ago period.

Raymond McDaniel, Chairman and Chief Executive Officer of Moody’s, commented, “The severity and protracted nature of current credit market dislocations confirms that the challenges of 2007 will persist well into 2008.”

Revenue for the full year 2007 totaled $2,259.0 million, an increase of 11% from $2,037.1 million for the same period of 2006. Operating income for the full year 2007 was $1,131.0 million and included a restructuring charge of $50.0 million.

Diluted earnings per share of $2.58 for the full year 2007 included a $0.19 per share benefit from the settlement of a legacy tax matter in the second quarter of 2007 and an $0.11 per share charge related to restructuring actions.

Excluding the 2007 restructuring charge and the 2006 gain on building sale, operating income of $1,181.0 for 2007 grew 7% from $1,098.9 million in 2006. Excluding the adjustments listed above and the impact of legacy tax matters in both years, full year 2007 diluted earnings per share were $2.50, 11% higher than $2.25 in 2006.

European Rate Decisions

The European Central Bank left its rate unchanged at 4% after an unanimous decision by governing council of 21 members. The President Jean Claude Trichet signaled that he will consider lowering rates if the economy show any sign of weakness. Euro fell after the rate decision. Before the meeting the ECB had signaled that it is worried that wage rise may fuel the inflation and market had interpreted it as a possible rise in interest rates.

The Bank of England lowered its rate by 0.25% to 5.25% after a decision by a nine-member governing body. The pound fell against the dollar and euro after the rate decision. Weak retail sales, falling housing prices, and consumer anxieties have all affected the economic outlook for UK. Interest rates in UK are still high among group of seven wealthiest nations and UK is likely to face weakening economy and rising inflation pressures in 2008.


[R]5:00AM New York, 7:00 PM Tokyo- Japan’s foreign exchange reserves rose $22.68 billion $996.04 billion in January.[/R]

Stocks rose in Japan after the country’s foreign exchange reserve assets climbed for the seventh straight month to a record level on the rising trade surplus. The Bank of Japan holds less than 3% of its assets in gold.

The Bank of Japan’s Deputy Governor’s view Kazumasa Iwata that consumer spending remains stronger than consumer confidence also helped positively influence investor sentiment.

Market sentiment

In Tokyo trading Nikkei 225 index shares rose 0.82% or 107.91 to 13,207.15 and the broader Topix Index jumped 0.5% or 6.67 to 1,305.08.

In the first section of the Tokyo Stock Exchange 10.8 billion shares worth 1.2 trillion yen changed hands and in the second section 256 shares valued at 3.39 billion yen were traded.

Of the Nikkei 225 stocks 120 rose, 94 declined, and 11 were unchanged.

Nichirei Corp led advancers with a rise of 7.63% followed by gains in Konami Corp. of 7.28%.

Foreign Reserve Rises

The Ministry of Finance reported today that the country’s foreign reserve assets climbed by $22.68 billion at the end of December to $996.04 billion in January.

Of the reserve assets, $844.4 billion are in securities while $124 billion in deposits. The IMF reserve position holds $1.4 billion, $3 billion are in SDRs, gold accounts for $22.7 billion, and other reserve assets are at $376 million.

Discomfort over BHP, Rio Deal

Kyodo news reported yesterday that secretary general of Japan’s Fair Trade Commission Shoji Ito said the country will discuss with other countries, including Australia and Britain, on whether the takeover bid of Rio Tinto by BHP Billiton presents antitrust complications.

Japan Iron and Steel Federation has already registered its reservations on the deal as the merger of the two mining companies will lead to the country relying on one company for 60% of its iron ore products.

Consumer spending

Bloomberg news reported that Deputy Governor of the Bank of Japan Kazumasa Iwata said today in a speech in western Japan that consumer spending remains firmer than consumer confidence.

Separately, the online edition reported that the Bank of Japan Governor Toshihiko Fukui told parliament today that rising oil prices were posing significant inflationary pressures on the economy at the same time dampening growth.

Property acquisitions drops

The Nikkei online edition reported today that the obtaining tight credit conditions and soaring prices of properties slowed property purchases by real estate investment trust by 32% in value last year.

The yen climbed 0.27% from 106.55 to 106.54.

Gainers and Losers

Nichirei Corp. led gainers of the Nikkei 225 index shares with a rise of 7.63% followed by rises in Konami Corp. of 7.28%, in Softbank Corp. of 6.23%, in Nisshin Industries of 5.94%, and in KDDI Corp. of 5.15%.

Shipping lines also rose after brokerage Merrill Lynch & Co. raised the rating on the industry on expectations of high profitability from rising freight charges. Nippon Yusen rose 4.80%, Kawasaki Kisen advanced 2.06% and Mitsui O.S.K. Lines increased 1.62%.

Taiyo Yuden led decliners of the Nikkei 225 index shares with a fall of 7.17% followed by losses in Nippon Suisan of 4.30% in Sumco Corp 4.07%, in Komatsu Limited of 3.94%, and in Mazda Motor Corp. of 3.87%.

Taiyo Yuden fell after cutting its full-year profit target and on a downgrade on the stock by Goldman Sachs from “buy” to “neutral”.

Earnings News

Mazda Motor Corp. reported today that net sales for the nine months ending December 31st rose 9.5% to 2.5 trillion yen from 2.2 trillion a year ago. Operating income edged up 1.1% to 108 billion yen from 107 billion yen a year ago. Net income gained 6.9% to 45 billion yen from 42 billion yen. Mazda however maintained its full-year profit target at 85 billion yen.

Isuzu Motors Limited also reported third quarter profit leapt 12% to 24.4 billion yen from 21.9 billion yen a year ago. Sales during the quarter increased 7% to 430 billion yen. The company maintained its annual profit forecast at 80 billion yen. The stock closed up 0.47%.

All Nippon Airways Co. said Wednesday it will raise regular international airfares at Japanese airports by 6% to17% from April 1.

The company said fares on North American and Hawaiian routes will be increased by 13% and European routes will rise 6% to17%.
[R]3:00AM New York, 7:00PM Sydney- ASX 200 index fell 0.2% despite late rally in mining stocks.[/R]

Market Sentiment

ASX 200 index lost 0.2% or 12.7 to close at 5,596.70.

The Preliminary market turnover was 407.7 million shares worth $861.4 million, with 108 stocks moving up, 774 stocks moving down and 224 unchanged.

Market Drivers

The Australia and London listed arms of Rio Tinto today unanimously rejected the BHP Billiton Ltd''s, 3.4 BHP shares for one Rio Tinto share bid for the second time in as many months, saying that the offer ""significantly"" undervalued the mining company.

The directors said the decision had been reached after they had given ""careful consideration"" to the offer made public earlier in the day. Rio''s chairperson Paul Skinner said in a statement: ""BHP Billiton''s offers, while improved, still fail to recognise the underlying value of Rio Tinto''s quality assets and prospects. Our plans are unchanged, and will remain so unless a proposal is made that fully reflects the value of Rio Tinto.""

The offer requires acceptances from 50% or more shareholders of the publicly held shares in each of Rio Tinto limited, Rio Tinto plc and BHP Billiton.

Meanwhile Rio today announced 3 billion ton increase in its iron ore resource base in Western Australia. Analysts believe that the disclosure was designed to put more pressure on BHP Billiton to increase its bid for the company. Rio Tinto shares lost 0.1% while BHP Billiton added 0.7%.

Interest rates to rise

After the Reserve Bank of Australia raised its interest rates by 0.25% to 7% local banks have quickly passed the rate hike to customers despite vocal opposition from politicians.

The National Australia Bank announced that it would increase its interest rates within days but did not say by how much.

The Commonwealth Bank raised its interest rates yesterday by 0.3% while Westpac and St George Bank today increased their rates by 0.25%. Adelaide and Bendigo Bank have also announced they are passing on the increase in official interest rates to customers.


Gainers and losers

Of the ASX 200 index stocks, Allco Finance Group led the gainers with a rise of 12.8% followed by increases in Centro Properties of 12.3%, in Centennial Coal of 7.7%, Queensland Gas of 6%, and in Dyno Noble Ltd of 5.8%.

Of the ASX 200 index stocks, AED Oil Limited led the decliners with a fall of 12.7% followed by losses in IOOF Holdings Lt of 10.3%, in Futuris Corp Ltd of 6.5%, in Sally Malay Mini of 6.5% and in Boom Logistics of 5.5%.


Futuris predicts strong results

Agribusiness Futuris Corp Ltd today announced that it was expecting a strong performance ahead of the release of its earnings in the second half of the financial year, despite booking a lower first half net profit.

Net profit in the six months to December 31, 2007 declined 17% to $27.5 million from a year ago. Its net profit from continuing operations rose 20% to $27.5 million. The company''s property division, which has been sold, made a $10.1 million contribution after tax to the first half result for fiscal 2007. Futuris stock shed 6.5%.


IOOF share in 10% fall

Funds manager IOOF Ltd''s stock plunged 10.3% after it forecast a decline in first-half profit due to the fall of assets under its management. The company also downgraded its annual earnings guidance. IOOF said it expected its first-half net profit of between $15 million and $16 million compared to last year''s profit of $16.3 million.

IOOF also forecast its full-year underlying net profit to be similar to the prior year''s $29.2 million.


API shares advances

The drug distributor and beauty products retailer, Australian Pharmaceutical Industries Ltd''s sales rose 18% for the first five months of its fiscal 2008. The company said its turnaround was on track after former managing director Jeff Sher resigned last year when it reported a net loss of $11.27 million. API stock gained 5%.


Corporate Express halts acquisitions

Office products supplier Corporate Express Australia halted more acquisitions after posting a net profit of $68.039 million in 2007. Net Profit was up 0.6% from a year ago on revenue rise of 5.1% to $1.3 billion. Earnings before interest, tax, depreciation and amortization rose 7.2% to $112.9 million.

Chief executive Grant Harrold said profit had remained stable on the company''s strategy of moving into new markets, new product lines and acquisitions. Corp Express shares shed 3.9%.

Executive Appointments

Wesfarmers today announced the appointment of UK retailer Ian McLeod to lead the Coles Meyers supermarket and convenience business. Wefarmers assumed control of Coles more than two months. McLeod will assume his position in May of this year.

McLeod helped turn around the struggling Asda supermarket chain in the last decade and He led the Celtic Football Club in Scotland.

Investment banker, Mark Irwin has been appointed chief executive officer of Australia''s largest grain handler, GrainCorp Ltd effective March 31. Prior to his appointment, Irwin worked in corporate transactions at Standard Bank Plc