Seek profit up 62% to $89 million, Fosters slumps to big loss: Economy Roundup

Online job listings site Seek has recorded a 62% increase in full year net profit to $89.5 million, up from $55.3 million in 2009, with revenue up by 34.7% to $280.7 million.

Chief executive Paul Bassat said in a statement the company is now well positioned for continued growth.

“There are still segments in the market where Seek is under-penetrated and the majority of job ad spend still resides in print,” Bassat said.

“If the current labour market trajectory continues, expect Seek to be the primary beneficiary given its market leading position and exposure to favourable structural trends.”

Bassat also said that Seek had “experienced sustained and consistent month on month growth in job ads”.

“This reflects the trend of continued structural migration from print to online with online now capturing approximately 80 per cent of all job ads.”

The company also noted there are still acquisition opportunities in its education business, which recorded revenue growth of 36%, and EBITDA growth of 41%.

Foster’s Group has recorded a net loss of $464.4 million for the 12 months to June 30, down from a $438.3 million profit in 2009, due to soft demand for beer and the high value of the Australian dollar.

The result includes a non-cash impairment of $1.16 billion against the carrying value of wine assets, along with an expected write down for wine of $1.27 billion.

Net sales revenue fell by 4.6% to $4.29 billion, while EBIT dropped by 4.6% to $1.09 billion. Chief executive Ian Johnston said in a statement that any issues and costs are under control and on schedule, including the potential demerger of its business.

“Management, logistics and capital structure deliberations are progressing well with the process of seeking the necessary tax rulings to commence shortly,” he said.

“While no final decision has been made, the timeline for a potential demerger remains the first half of calendar 2011.”

“Cost reductions of $83 million have been included in the 2010 results with full realisation of the $100 million of benefits expected in the 2011 financial year.”

Origin Energy has recorded a 10.3% increase in full-year underlying profit to $612 million, although that result is lower than analysts’ expectations.

Underlying profit in the year to 30 June was $585 million, with the company saying earnings were hurt by write-offs related to its exploration activities.

“A number of development projects and acquisitions are expected to make initial, or increased, contributions to Origin’s financial performance,” it said of the next financial year.

Flight Centre posted a net profit after tax of $139.9 million for the year ending 30 June, up from the $38.2 million recorded in 2009. EBIT came to $203.5 million, with shares up 3.7% to $19.15 at 10.30 AEST.

Despite ongoing volatility, the company said it expects further growth in the next financial year due to “good momentum”.

Shares lower after weak Wall Street dips

The Australian sharemarket has opened lower today, following weak Wall Street leads, commodity markets and low results from European markets.

The benchmark S&P/ASX200 index was down 48 points or 1.09% to 4380.5 at 12.10 AEST, while the Australian dollar was slightly down to US89c.

ANZ shares lost 0.8% to $22.76, while Westpac lost 1.9% to $21.64. NAB fell 1.1% as AMP rose 0.4% to $4.92.

GPT Group has recorded a net profit after tax of $145.2 million in the first six months of the year, compared to a $1.196 billion loss in the previous corresponding period.

“In the first half of this year we completed a security consolidation, established new debt lines, grew our wholesale funds and increased our focus on driving returns from the business,” chief executive Michael Cameron said in a statement.

“As a result of the significant progress made on non-core divestments, the asset sale program is largely complete and the core Australian portfolio now represents over 90% of investments.”

Macarthur Coal has recorded a fall in full-year profit to $125 million, down by 25% from last year’s result. Gross profit dropped to $272 million, with shares placed in a trading halt ahead of a possible acquisition.

Aristocrat profit down 17%

Aristocrat Leisure, the second-largest manufacturer of slot machines, recorded a 17% fall in net profit to $46.6 million, with revenue increasing 22.9% to $396.5 million.

“As we anticipated, conditions across most markets during the first half of 2010 have been very difficult and have impacted our operational performance. While we do not expect conditions to improve in the second half of this year, we anticipate performance to be weighted to the second half,” Aristocrat chief executive and managing director Jamie Odell said in a statement.

Xstrata has agreed to take over Sphere Minerals, with the company’s shares surging over 60% to $2.45 as of 11.00 AEST this morning.

“Xstrata’s offer provides our shareholders with an attractive cash premium which recognises the significant achievements of our team in developing the company’s portfolio of iron ore projects over the past ten years,” Sphere managing director Alexander Burns said.

“We recommend that, in the absence of a superior proposal, shareholders accept Xstrata’s offer.”

Mirvac Group has recorded a full-year net profit of $237.4 million, compared to a $1.08 billion loss for 2009, saying it expects similarly good results over the next year.

“The Australian economy continues to perform well and has recovered from a relatively mild downturn,” the company said in a statement.

“The labour market continues to improve and housing investment is set to accelerate over the remainder of the calendar year.”

Fund manager Perpetual has recorded a net profit of $90.5 million for the year, up from $37.7 million in 2009, saying solid economic conditions assisted its improvement.

“Perpetual was able to improve its operating leverage to the markets by preserving the benefits of the cost savings initiatives undertaken in the 2009 financial year,” it said in a statement.

In the United States, Wall Street stocks dropped on continued fears over the struggling economy. The Dow Jones Industrial Average fell 39.21 points or 0.38% to 10,174.41.