Shares in retailer Harvey Norman fell as much as 3% on Friday after the company reported a 4% increase in first-half sales and reaffirmed first half profit guidance for a rise of more than 40%.
Harvey Norman reported yesterday that sales for the six months to December 31 were $3.27 billion against $3.15 billion in the previous corresponding period, representing a lift of 4%.
The shares closed down 10 cents, or 2.7 %, at $3.62.
Although the company said sales for the month of January had met expectations and that it remained cautiously optimistic about the next five months, there was no comment about trading for the weeks leading into Christmas.
We will have to see what the company’s rival, JB Hi-Fi says about Christmas trading in its interim report, due out today.
Harvey Norman said sales from its retail outlets in Australia, New Zealand, Slovenia and Ireland for the six months to December 31 rose 4% to $3.27 billion.
Like-for-like sales for the half increased by 2.5 %.
Australian sales for the first half were up 6.4%, and like-for-like sales were up 5.6% when compared to the previous corresponding half.
‘‘Unaudited preliminary accounts for the period 1 July 2009 to 31 December 2009 indicate that profit before tax and minority interests for the consolidated entity for the six months ended 31 December 2009 should exceed the profit before tax and minority interests in respect of the corresponding period for the previous year, by in excess of 40 per cent,’’ it said in a statement to the ASX.
Virgin Blue has added to the emerging rebound in the travel industry after upgrading its pre-tax profit forecasts to as much as $110 million for the full year.
It joins Webjet, Flight Centre and Qantas in either upgrading their earnings outlook, or suggesting that an improving tone could be detected.
The upgrade saw brokers mark up their calls on Virgin Blue.
In a statement, the airline said it estimated its net profit before tax and exceptional items at between $80 and $110 million for the year to June 30, compared with a loss of $93 million a year earlier.
Virgin Blue’s previous guidance was for a "return to profitability’ this financial year.
The shares ended steady at 55c.
The airline said the earnings forecast reflected an improvement in operating conditions in the first half of the year.
That was driven by a fall in the average price Virgin Blue paid for fuel to $US92 a barrel, compared with $US127 for the previous corresponding period, and some recovery in yields for its domestic business.
However, Virgin Blue said some concerns remained around the pace of the global economic recovery and continuing volatility in domestic and international markets.
It said competition in the domestic travel market would put pressure on air fares for the remainder of this year.
"The Profit before tax and exceptional items guidance excludes any adjustments in respect of hedging ineffectiveness. Based on current market conditions and volatility, we would expect a credit in respect of this item for the full year," the company said.
Flight Centre last month lifted its earnings forecasts for this financial year by as much as 33% after stronger than expected ticket sales in the first half.
Qantas also said in December that an improvement in average air fares and demand was set to steer it back into profitability in the first half.
Virgin Blue will report its half-year results on February 24.
Resmed surprised Friday, reporting sharply better second quarter figures that topped market forecasts.
For the quarter ended December 31, 2009, income from operations was $US57.9 million and net income was $US46.0 million, an increase of 34% and 36%, respectively, compared to the quarter ended December 31, 2008 .
Sales surged 23% to $US275.1 million.
Resmed, which manufactures in Australia and generates more than half of its sales in the US, said sales in the Americas increased 20% to $148 million.
For the six months ended December 31, 2009, revenue was $US522.1 million, up 18% over the six months ended December 31, 2008.
Income from operations and net income were $110.6 million and $88.1 million, an increase of 38% and 42% respectively, compared to the six months ended December 31, 2008.
Diluted earnings per share for the six months ended December 31, 2009 were $1.15 per diluted share, an increase of 44% compared to the six months ended December 31, 2008.
The company said "In the second quarter of fiscal 2010, we continued to show strong growth year over year.
"Our favorable mix of product sales and market share gains led to a 20% increase in the Americas over the prior year’s quarter, resulting in $US148.0 million in revenue.
"Sales outside the Americas increased by 27% to $US127.1 million over the prior year’s quarter, or a 14% increase on a constant currency basis."
Resmed shares jumped 5.8% to $6.34 on Friday, a strong performance given the sell off that cut the market by more than 2% on the day.
Pathology group, Sonic Healthcare has acquired the Belgian laboratory chain, Medhold Group.
Sonic said the purchase price for Medhold was based on an enterprise value of euros 232 million ($A368.72 million).
It represents an earnings before in
