Wesfarmers profit rises 11% on strong Coles sales: Midday roundup

Wesfarmers has recorded an increase in net profit of 11% for the 2011-12 financial year, on the back of strong sales in its Coles division.

The supermarket chain recorded a 16.3% increase in pre-tax earnings to $1.35 billion. Wesfarmers full-year net profit came to $2.12 billion.

Revenue for the entire company, which includes discount chain Kmart and hardware group Bunnings, rose 5.8% to $58 billion.

Bunnings recorded pre-tax earnings up 4.9% to $841 million, although Target has suffered another drop, down 12.9% to $244 million.

Wesfarmers managing director Richard Goyder said the outlook for the company remained positive despite disappointing consumer confidence.

”The group has a strong portfolio of businesses and a healthy balance sheet providing a good outlook for growth, both from within the existing group and from potential business expansion opportunities,” he said in a statement.

AMP records stronger interim profit

AMP has recorded a 10% increase in net profit for the six months to June 30, the company announced this morning.

The business reported a net profit of $383 million, with revenue from ordinary activities increased by 79% to $7.03 billion.

Chief executive Craig Dunn said the business is facing structural changes across the industry, and that this is influencing the company’s strategy.

“We’re not running the business waiting for things to go back to the way they used to be,” he said.

“We’re running the business for the changed environment we face today and in the future.”

Shares up despite mixed offshore leads

The Australian sharemarket has risen higher this morning despite a mixed result from offshore markets.

The benchmark S&P/ASX200 index was up 23 points or 0.5% to 4304.5 at 12.00 AEST, while the Australian dollar maintained its position at $US1.04.

In the United States, the Dow Jones Industrial Average fell 7.4 points or 0.1% to 13,164.8.

iiNet profit rises 12%

ISP iiNet has recorded a 12% increase in profit to $144 million after spending more than $200 million in acquisitions over the past two years.

The company also said its revenue rose 19% to $831 million.

The company confirmed it added 198,000 DSL services during 2011-12, giving the company a total of 839,000 subscribers.