Suncorp-Metway profit up 41%, Shares slide: Economy Roundup

Suncorp-Metway has recorded a 41% increase in net profit to $364 million for the first half of the year, compared to $258 million during the previous corresponding period.

However, the bank’s shares dropped 4.45% to $8.80 after the news was announced. Revenue also rose by 6% to $7.95 billion.

“Although there is still a lot of hard work ahead of us to ensure Suncorp realises its full potential, this result has laid a solid foundation for the group’s future success,” chief executive Patrick Snowball said in a statement to the ASX.

“While the headline numbers are strong, once you peel back the benefits of a more favourable weather environment and improving investment markets you arrive at a margin that needs to improve,” he said.

Virgin Blue has recorded a net profit after tax of $62.5 million for the six months ending December 31, compared to a loss of $101.4 million during the previous corresponding period.

Revenue increased by 12.2% to $1.52 billion, with total revenue per available seat kilometre falling 10.1% to 9.24c

“While the board and management are of the view that the group is well positioned to take advantage of an improving market, they remain alert to the pace of the global economic recovery and the continuing competitiveness in domestic and international markets,” the company said in a statement.

“As previously advised, seasonality and competitive activity in the domestic market will put continued pressure on yields for the remainder of this year.”

Shares open lower after US declines

The Australian sharemarket has opened lower this morning after Wall Street stocks fell due to drops in consumer confidence and poor performances in commodities markets.

The benchmark S&P/ASX200 index was down 62 points or 1.33% to 4655.6 at 12.00 AEST, while the Australian dollar also opened lower to US89c.

ANZ shares fell 0.9% to $22.53, while Commonwealth Bank shares dropped 0.5% to $54.28. Westpac lost 0.7% to $26.18 as NAB fell 1.7% to $24.83.

Manufacturer Pacific Brands has recorded a $22.4 million profit for the first half of the year, but net profit before significant items was down 39.7% to $35.5 million. Earnings before interest, tax, depreciation and amortisation were down 31% to $80.3 million.

“As indicated to the market in August last year, our earnings in the first half have been affected primarily by the delayed impact of the sharp decline in currency rates,” Pacific Brands chief executive Sue Morphet said in a statement to the ASX.

Meanwhile, Carsales.com recorded a $19.1 million net profit for the six months to December 31, compared to $12.6 million in the previous corresponding period.

The site also said operating revenue was $56.1 million, compared to $44.5 million, with EBITDA rising to $28.7 million from $19.5 million.

Mortgage Choice profit up 18%

Mortgage Choice posted a $9.76 million net profit for the first half of the year, with revenue from ordinary activities up 6.8% to $74.4 million.

“It is important to note we are not forecasting the second half of this financial year to rival the first, however Mortgage Choice is on target for a sound FY10 result,” chief executive Michael Russel said in a statement.

Woodside Petroleum has posted a 2.1% increase in net profit to $1.82 billion for the full year, with revenue from ordinary activities falling 27.3% to $4.35 billion.

“The impact of lower commodity prices and the revaluation of our US dollar debt in a weaker US dollar environment had opposing but material outcomes on our 2009 financial results,” the company said in a statement.

“Oil prices have recovered from their lows in early 2009 and, despite current global economic conditions, the fundamental drivers for medium- and long-term LNG demand remain strong for both the Asia-Pacific and Atlantic basins,” managing director and chief executive officer Don Volte said.

Meanwhile, CSR has named non-executive director Jeremy Sutcliffe as the current interim managing director, who will replace current MD Jerry Maycock when he steps down next month.

“In the context of the recent federal court decision, shareholders should be assured that the board, in considering separation proposals, will continue to take into full account the interests not only of shareholders but of all stakeholders, including those with a relevant interest in the asbestos issue,” it said in a statement.

Overseas, Wall Street stocks fell after worse-than-expected consumer confidence data was released. Private data showed consumer confidence fell to a 10-month low due to a worsening outlook on jobs.

The Dow Jones Industrial Average fell 100.51 points, or 0.97%, to 10,282.87.