Woolwroth Net Rises, OZ Minerals Net Loss

Darlington Musarurwa
27 Feb, 2009
New York City

Australian stocks ended flat on disappointing earnings at both Woolworths and OZ Minerals. Energy stocks helped trim losses as crude oil prices rose 6.4% to $45.2 per barrel. Woolworth reported sales rise of 9% and net income increase of 10%. OZ Minerals reported net loss.

[R3:00AM New York, 7:00PM Sydney - Woolworths to add 7,000 jobs in H2. OZ Minerals annual loss rises to A$66.4 million in 2008.[/R]

Australian stocks ended flat on disappointing earnings at both Woolworths and OZ Minerals. Energy stocks helped trim losses as crude oil prices rose 6.4% to $45.2 per barrel.

In Sydney trading ASX 200 index slid 0.03% or 1 to 3,344.50. Of the ASX 200 index stocks, 94 increased, 89 declined, and 17 were unchanged.

Gloucester Coal led advancers in the index shares with a rise of 25.9% followed by Equinox Mine-CDI soaring 20.7%.

Woolworths to Add 7,000 Jobs in H2

Australia’s largest supermarket chain Woolworths reported today that the country’s net profit in the six months ended December 31 rose 10.3% to A$983.3 million from A$891.3 million in the comparable year ago period as sales climbed 8.8% to A$26.1 billion from A$24 billion a year ago.

An interim dividend of 48 cents was declared.

The retailer also announced that it has invested A$1 billion to boost the operations of the company, which has seen the creation of 9,000 jobs in the first half of the year and add 7,000 people in the second half.

Chief executive officer of the company Michael Luscombe forecasts that full-year profit will rise between 11% and 14% as sales are expected to increase between 5% and 9.9%.

OZ Minerals Reports Loss

OZ Minerals reported a net loss of A$66.4 million in the year ending December 31 on falling commodity prices, impairment of assets and write-downs and one-time costs associated with the acquisition of Zinifex by Oxiana.

Zinc prices dropped 38% in the second half of the year to US$1,180 per ton after falling 19% in the first half, while copper prices slipped 67% in the second half to US$2,902 a ton at the end of the year.

The company wrote-down A$2.3 billion in the period. Costs associated with restructuring including the cancellation of various contracts and termination payments increased to A$22.3 million after tax.

Gainers & Losers

Gloucester led advancers in the ASX 200 index shares with a rise of 25.9% followed by increases in Equinox Mine-CDI of 20.7%, in OZ Minerals of 12.5%, in Acquarius Plc of 11.3%, and Envestra Ltd. of 10.3%.

Energy stocks increased after crude oil prices advanced 6.4% to $45.2 per barrel. Paladin Energy increased 9.1% and Nexus Energy jumped 8.6%.

Boart Longyear Group led decliners in the ASX 200 index shares with a decline of 29.6% followed by losses in Macquarie Media of 16.8%, in Tishman Speyer of 16.7%, in Valad Property of 11.1%, and ING Industrial of 9.8%.