Harvey Norman profit rises 9%, but sales down: Midday Roundup

Retail giant Harvey Norman has recorded a 9% lift in profit to $252.26 million, but says it remains cautious as volatility in global markets continues.

It also said that like-for-like sales for the 2010-11 financial year fell by 6.5% compared to the previous corresponding period.

The retailer praised the high Australian dollar, saying that although this is putting pressure on costs, “the Australian consumer is being rewarded with lower prices”.

It also said that the conversion of most of the Clive Peeters and Rick Hart stores “should result in an overall benefit”.

Total revenue was $2.7 billion, with a final dividend of six cents announced.

Building approvals rise 1% in July

The number of building approvals granted in July rose by a seasonally adjusted 1%, according to the latest figures from the Australian Bureau of Statistics.

The result comes after the Housing Industry Association yesterday announced that new home sales had fallen by 8% in July, following an 8.7% fall in June.

The figures show the adjusted estimate for private sector houses fell by 0.2% in July, following a fall of 3.3% in June, while the estimate for private sector dwellings excluding houses fell by 1.4%.

The estimate of the value of total building approvals fell by 4.4% in July, after a fall of 1.4%, while the estimate for the total value of residential building fell by 1.2%.

Shares higher after strong Wall Street lead

The Australian sharemarket has risen 1% higher this morning, following a strong night on Wall Street after two banks merged in Europe, easing fears of a sovereign debt crisis.

The benchmark S&P/ASX200 index was up 20 points or 0.49% to 4284.2 at 12.00 AEST, while the Australian dollar also rose $US1.06c.

AMP shares rose by 1.38% to $4.42, while Commonwealth Bank shares rose 1.13% to $48.50. NAB shares rose 1.62% to $23.82 as Westpac shares 1.08% to $20.64.

In the United States, the Dow Jones Industrial Average rose 254.71 points or 2.26% to 11,539, after two Greek banks – Eurobank EPG and Alpha Bank – relieved fears of a sovereign debt crisis continuing to spread.

Industrial relations system flexible: Government

Workplace relations minister Chris Evans has told ABC Radio this morning that “ideological warriors” have started the new debate regarding the flexibility of the industrial relations system.

Some critics have said lately that the Government needs to review its Fair Work system and ensure that businesses are able to treat staff flexibly if required.

“The Labor Government is not going down that path,” Evans told ABC Radio today. “We’ve had that debate … and for those who want to go back to that debate I think it’s more about ideology.”

“We have ideological warriors, those who want to go back to individual contract system joining the debate.”

Bright Foods approached by Australian companies

Chinese food and dairy group Bright Food Group has told Reuters that it has been approached by some Australian companies regarding some business opportunities.

The company, which is attempting to expand throughout Australia, says that Australia is a key area of growth.

“Many Australian businesses have to come to us with more business opportunities, which really boosts our confidence and… laid a very solid foundation for us,” vice president Ge Junjie told the publication.

“Australia strategically is our focal point.”