JB Hi-Fi profit leaps 45%, Shares flat after Wall Street dip: Economy Roundup

Good news for the retail sector today, with electronics retailer JB Hi-Fi announcing it expects strong earnings growth in the next year with the announcement of a 45% increase in annual profit.

The company recorded a full year net profit of $94.4 million for the 2008-09 year, and lifted its full year dividend by 69%. Shares rose by 6.3% to $16.93.

“This is a very pleasing result during what is considered a sustained, generally weak retail climate,” chief executive Richard Uechtritz said in a statement.

“The company expects sales in FY10 to be circa $2.8 billion, a 20% increase on the prior financial year,” the company said.

“Our continued store rollout and the maturing of recently opened stores enables us to expand our offering, take advantage of increased economies of scale and improve our market share.”

Meanwhile, new figures from the Australian Bureau of Statistics show the total value of owner occupied housing commitments, excluding alternations and additions, increased by a seasonally adjusted 1%.

Additionally, total personal finance commitments jumped by a seasonally adjusted 2.6%, with fixed lending and revolving credit commitments rising by 2.6% and 5.8% respectively.

The value of total commercial finance commitments fell by a seasonally adjusted 7.6%, with both revolving credit and fixed lending commitments falling by 17.3% and 2.5% respectively. Lease finance commitments fell by 17.2%.

Shares open flat after Wall Street losses

The Australian share market has opened flat today, despite negative results overnight from the US on Wall Street. The benchmark S&P/ASX200 index was down 4.4 points or 0.1% to 4299.7 at 12.10 AEST. The Australian dollar also remained steady at US83c.

Westpac shares gained 1.4% to $22.98, while NAB also gained 1.3% to $25.80. ANZ rose 0.9% to $19.46, while Commonwealth Bank shares gained 0.6% to $44.12.

Hearing implant company Cochlear recorded a 13% increase in net profit for the year ending in June, the company said. Full year net profit rose from $115.23 million to $130.5 million, with product sales also increasing by 23% to $711.8 million. ??”This result confirms the strength of Cochlear’s business in a complex and difficult global environment,” chief executive Chris Roberts said in a statement.

National Australia Bank has announced that its Bank of New Zealand subsidiary will appeal a decision made by the country’s High Court regarding a $335.9 million tax payment.

“This is a complex area of law, and given the facts of the case, we’re not convinced that the decision was the right outcome,” BNZ chief executive Andrew Thorburn told Business Spectator.

Wall Street nervous about economic data

Meanwhile, financial services group Count Financial has announced it expects strong performance in the current financial year after annual profit fell by 9% during 2008-09. Its profit fell from $21.4 million to $19.4 million.

“Historically the company gives its first profit guidance at its AGM in November. Management is expecting both 2010 EBIT (earnings before interest and tax) and NPAT (net profit after tax) to be up on 2009,” the company said in a statement to the ASX.

Overseas, Wall Street recorded losses as anxiety took hold ahead of a wave of economic data, including the Federal Reserve’s statement on interest rates and the economy, and official retail sales. ?
The Dow Jones industrial average lost 32.12 points, or 0.34%, to 9,337.95.