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Intelligent Investor

19 Aug 09 - Reporting wrap

Today was another busy day, with many large companies reporting full year and half year results.
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By Gareth Brown · 19 Aug 2009
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Gareth Brown
By Gareth Brown ·
19 Aug 2009
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Recommendation

ARB Corporation Limited - ARB
Current price
$37.74 at 16:40 (19 April 2024)
Price at review
$4.34 at (19 August 2009)
Business Risk
Medium
Share Price Risk
Medium-High
All Prices are in AUD ($)
Boral Limited - BLD
Current price
$5.62 at 16:40 (19 April 2024)
Price at review
$5.87 at (19 August 2009)
Business Risk
Medium
Share Price Risk
Medium-High
All Prices are in AUD ($)
Crowe Horwath Australasia Ltd - CRH
Current price
$0.50 at 16:20 (09 January 2015)
Price at review
$1.01 at (19 August 2009)
Business Risk
Medium-High
Share Price Risk
Medium-High
All Prices are in AUD ($)
Origin Energy Limited - ORG
Current price
$9.76 at 16:40 (19 April 2024)
Price at review
$14.70 at (19 August 2009)
Business Risk
Medium-Low
Share Price Risk
Medium
All Prices are in AUD ($)
Perpetual Limited - PPT
Current price
$24.15 at 16:40 (19 April 2024)
Price at review
$36.17 at (19 August 2009)
Business Risk
Medium
Share Price Risk
Medium-High
All Prices are in AUD ($)
Qantas Airways Limited - QAN
Current price
$5.62 at 16:40 (19 April 2024)
Price at review
$2.69 at (19 August 2009)
Business Risk
Medium-High
Share Price Risk
Medium
All Prices are in AUD ($)

Perpetual 

Perpetual has reported more than its fair share of stuff-ups over the past 18 months and, at the 2009 results presentation, unit pricing errors took centre stage. Poor investment markets saw underlying profit fall 51% to $65.7m, while a fully franked final dividend of 60 cents was declared. Management’s ‘Discussion and Analysis’ contains a lot of useful information, and this press report is a good summary, or head to James Greenhalgh’s full review.

CSL Limited

The 2009 year was truly a ‘sweet spot’ for CSL. Profit rose 63% to $1.15bn, with the company benefiting from its influenza vaccines, favourable currency movements, and a huge cash balance reserved for the ultimately unsuccessful bid for Talecris. The final dividend was 40 cents unfranked. Management forecasts a 2010 profit of between $1.16bn and $1.26bn. Read the company’s results, or this news report for more details. 

WHK Group

There were no surprises in the WHK Group result, with underlying profit falling about 7% to $26.7m due to a poor performance from its financial planning division. As expected, fewer acquisitions led to stronger cash flow and the net debt-to-equity ratio falling to 24%. The final dividend was 1.5 cents fully franked. The company’s presentation gives a good overview of results. We’ll publish a full review over the coming weeks, and we have a podcast interview with managing director Kevin White scheduled this week.

ARB Corporation

Four wheel drive accessories company ARB Corporation reported an impressive net profit of $22.5m, up 15%, and a fully franked final dividend of 10 cents, up from 9 cents last year. We haven’t found any interesting media coverage of the result, as the company is a little off the radar for mainstream media – which is just the way we like it. But you can download the preliminary final report, and we’ve taken a closer look in this review.

Boral

Boral announced an underlying net profit for the year to 30 June 2009 of $131m, down 47%. Directors declared a fully franked final dividend of 5.5 cents, bring the yearly total to 13 cents, down from 34 cents during the 2008 financial year. Those interested can download the analyst presentation, or read this media summary.

Qantas

Compared to most airlines around the world, Qantas had a good 2009 because it still made a profit. The headline result, which is summarised in this article, was a profit of $123m, down from $970m last year. What press reports don’t point out, though, is the measly return on equity of 2%, or its high leverage to passenger and freight demand thanks to areoplane leases and net debt of almost $2bn. It’s a tough business, which is why the final dividend was culled and why the share price has to go much lower before we’ll be interested.

Sky City Entertainment Group

Strengthening the theory that gaming is relatively recession proof, Sky City’s New Zealand casinos were within 0.1% of their 2008 results, despite a difficult economy across the Tasman. Overall the company reported a 13% increase in net profit to NZ$115m, mainly due to a 19% increase in profit from the Adelaide Casino. Check out the actual result PDF here (warning – file size is quite large), or check out this summary from New Zealand media outlet The National Business Review. Debt has been our main concern in the past but it was cut by 30% during the year (thanks to a capital raising), so we’ll probably take a fresh look soon.

Origin Energy

This energy group reported an eye-popping headline profit of $6.9bn for the 2009 financial year, up 1,243%. But the result included a profit of $6.7bn from selling 50% of its gas business to ConocoPhillips. The underlying net profit, as summarised in this media review, was a profit of $530m, up 20%. You can download the company’s ASX results release here.
It’s an impressive company with excellent management but we’ll wait for a lower share price before we revisit it.

Woodside Petroleum

Woodside Petroleum announced a half-yearly net profit of $898m, down 12%, on record first-half production of 40.1MMboe, up 10%. Directors declared a fully franked interim dividend of 55 cents, down from 80 cents last year. There’s useful material in this half year results briefing and this article from The West Australian.

Domino’s Pizza Enterprises

For the year to 28 June 2009, Domino’s reported a 14.4% increase in network sales, to $676m, on same-store sales growth of 4.6%. As discussed in this results presentation, that led to a 23% rise in earnings per share. The board declared a fully franked final dividend of 8 cents, bringing the yearly total to 12.4 cents, up from 10.9 cents last year. This media report discusses the result and the company’s relative immunity from recession.
 
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Gareth Brown
Gareth Brown
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For more information on the companies discussed in this article, please click on the company of interest... CSL Limited (CSL) | Domino's Pizza Enterprises Limited (DMP) | SkyCity Entertainment Group Limited (SKC) | Woodside Petroleum Limited (WPL)

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