In the prospectus and other documentation for the rights issue, Wesfarmers provided shareholders with this update:
It shows a tiny improvement at the Coles supermarkets and liquor business, but it is early days. WES also updated on its pre-Coles businesses in the first quarter.
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For Coles supermarkets, WES said that total sales of the food and liquor business for the three months ended March 31, 2008 increased by 5.2%, compared to the same period in the prior year.
Store-on-store sales of the food and liquor businesses for the three months ended March 31, 2008 and for the period from December 31, 2007 through April 13, 2008 increased by 3.6% and 3.2%, respectively, compared to the same respective periods in the prior year. Sales for this period were driven by stabilizing sales performance of Bi-Lo stores as well as solid Easter trading.
Coles—Convenience
Total sales of the convenience business (excluding fuel) for the three months ended March 31, 2008 increased by 9.3%, compared to the same period in the prior year.
Store-on-store sales of the convenience business (excluding fuel) for the period from December 31, 2007 through March 30, 2008 increased by 6.5%, compared to the same period in the prior year. Operating results for this period were driven by improved convenience store format and value proposition, and good in-store performance. In addition, the business experienced fuel supply shortfalls in New South Wales and Queensland.
BunningsStore-on-store cash sales of Bunnings for the period from January 1, 2008 through April 13, 2008 increased by 11.0%, compared to the same period in the prior year. Sales for this period reflected uplifts across all merchandising categories. Consumer sentiment has been dampening during this period, and market conditions in the trade business remain tight.
Office Supplies
Total sales of the office supplies business for the period from January 1, 2008 through April 13, 2008 increased by 3.3%, compared to the same period in the prior year. Sales for this period were impacted by tightening trading conditions, including in small business customer markets, and margins were constrained by competitive forces.
Target
Total sales of the Target segment for the three months ended March 31, 2008 increased by 9.2%, compared to the same period in the prior year. Store-on-store sales of the Target segment for the period from December 31, 2007 through April 13, 2008 increased by 5.4%, compared to the same period in the prior year. Sales for this period were driven in part by a new advertising campaign, Easter trading and comparative promotional events, and offset in part by unseasonably warm weather in March, customer uncertainty and difficult trading conditions.
Kmart
Total sales of the Kmart segment for the three months ended March 31, 2008 increased by 5.0%, compared to the same period in the prior year. Store-on-store sales of the Kmart segment for the three months ended March 31, 2008 and for the period from December 31, 2007 through April 13, 2008 increased by 5.0% and 2.9%, respectively, compared to the same respective periods in the prior year. Sales for this period were driven by a solid launch of winter clothing, strong sell-through of summer products and good sales of Easter products, offset in part by aggressive competition and the impact on customers of the current economic climate.
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Curragh (QLD)
Coal production from the Curragh mine for the three months ended March 31, 2008 was 2,256,000 tonnes (comprising 1,638,000 tonnes of metallurgical coal and 618,000 tonnes of steaming coal), 0.2% higher than the three months ended December 31, 2007. Metallurgical coal production increased by 0.7% compared to the three months ended December 31, 2007, despite the impact of rain and flooding. Steaming coal production decreased by 1.3%, compared to the three months ended December 31, 2007. The Curragh mine maintained its position in the bottom quartile industry cost curve for hard coking coal for the year ended June 30, 2007.
Premier (WA)
Coal production from the Premier mine for the three months ended March 31, 2008 was 890,000 tonnes, 59.8% higher than the three months ended December 31, 2007. This increase reflected increased demand by Verve Energy. The three months ended December 31, 2007 had been impacted by Verve Energy’s scheduled maintenance and upgrade work at the Muja Power Station.
Bengalla (40% interest, NSW)
Wesfarmers’ share of coal production for the three months ended March 31, 2008 was 421,000 tonnes, 23.5% lower than the three months ended December 31, 2007, due to changes in the mining sequence resulting from the effects of wet weather in the prior quarter, and variations in coal seam thickness as operations move through the normal mining sequence.
Industrial & Safety
In the nine months ended March 31, 2008, the Industrial & Safety division experienced uplifts in sales across most product categories, compared to the corresponding period in the prior year.
Chemicals & Fertilisers
Fertiliser sales volumes were 18% higher in the nine months ended March 31, 2008 than the corresponding period in the prior year.
Energy
Wesfarmers’ LPG production for the nine months ended March 31, 2008 was 5% lower than the corresponding period in the prior year.
And this is a summary of what WES told shareholders at the interim report time.
The significant profit increase occurred because of the inclusion of the former Coles Group businesses which contributed $357 million before interest and tax.
Another very strong result from Bunnings saw its earnings increase by $55 million.
There was a reduction in earnings from th
