Australian Stocks Fall on Brambles Earnings

123jump.com Staff
16 Feb, 2009
New York City

Stocks in Australia dropped after the largest palette maker Brambles reported 31% fall in first half profit. However, the conglomerate Wesfarmers profit jumped. The Australian dollar dropped more than 1% against the U.S. dollar after G-7 finance ministers predict weak economic climate.

[R]3:00AM New York, 6:00PM Sydney - Brambles operating profit declines 31% to US$337.6 million in the first half, however, Wesfarmers profit rises 46% to A$879 million in the period.[/R]

Australia stocks tumbled after Brambles reported that operating profit fell 31% in the six months ended December 31. The company also plans to eliminate 750 jobs.

In Sydney trading ASX 200 index fell 1.2% or 42.2 to 3,516.90.

Of the ASX 200 index stocks, 59 gained, 125 declined, and 16 were unchanged. FKP Property led advancers in the index shares with a rise of 14.1% followed by Gunns Ltd increasing 13.3%.

Brambles Operating Profit Drops 31%

Brambles, the largest palette maker in the world for the six months ended December 31 that operating profit fell 31% to $337.6 million after the impact of significant items of $131.7 million before tax.

Also cash flow from operations fell by $44.9 million to $220.8 million after allowing for $54.7 million in significant items. However, sales revenue from continuing operations advanced 4% to $2 billion.

The company also declared an interim dividend of 17.5 Australian cents per share from 17 Australian cents per share in the same period a year earlier.

Brambles will cut 750 people over the next twelve months and save $60 million to $70 million over fiscal 2009 and fiscal 2010.

Brambles chief executive officer Mike Ihlein said, ""The current challenging and volatile trading environment is expected to continue for some time and this makes it difficult to provide outlook guidance with confidence.""

Wesfarmers Profit Jumps 46% to A$879 million in H1

Wesfarmers reported today that its interim profit in the period ending December 31 climbed 46% to A$879 million from the comparable year ago period driven by the retail business. In the retail division, Coles'' food and liquor sales rose 3.8% excluding the benefit of new store openings from 1.3% a year ago.

Australian Dollar Falls 1.1%

The Australian dollar dropped 1.1% to 64.99 against the U.S. dollar. The Australian dollar has been trading weak as G-7 nations f

Gainers & Losers

FKP Property led gainers in the ASX 200 index shares with a rise of 14.1% followed by increases in Gunns Ltd. of 13.3%, in Lynas Corp. of 12%, in Boart Longyear of 11.1%, and Energy World Corp. of 10%.

Asciano Group led decliners in the ASX 200 index shares with a drop of 14.3% followed by losses in Brambles Ltd. of 11.7%, in Kagara Ltd. of 8.7%, in EMECO Holdings of 8%, and ING Office Fund of 8.7%.

Commodity-linked stocks fell gold prices dropped 0.7% to $942.2 per ounce. Fortescue Metals declined 5.3%.