Mirvac Group seems to be back on track after an expected return to the black happened in the December 31 half year.
The property developer and investors has also boosted full year earnings guidance.
Net profit for the six months to December 31 was $47.16 million, compared to a $645.7 million loss in the prior corresponding period when the company had to absorb big asset write-downs.
Operating profit was up 59% at $129.38 million from $81.6 million. (It is only an indicator measure under accounting rules.)
The company’s securities rose 2c to $1.445 at the close yesterday, a long way from the recent peak of $1.745 around last September.
Managing director Nick Collishaw said in the statement to the ASX the results showed Mirvac was "well-positioned to deliver our earnings guidance", which the company revised upwards to 9.2c per stapled security.
Mirvac also revised upwards its dividend guidance to 8-9c per stapled security.
The company had earnings of 4.6c per stapled security and will pay a distribution of 4c per security.
The group’s investment division, which includes the MREIT, posted net profit of $50.1 million, up from a loss of $368.5 million in the previous corresponding period.
Mirvac Hotels and Resorts expanded its portfolio with two new hotel management contracts.
The division posted a net profit of $5.9 million, down from $8.5 million in the previous corresponding period.
Engineering contractor Macmahon Holdings is another company now back on track after the December half year.
The company told the ASX yesterday that earnings rose 52.5% in the first half.
Net profit was $21.5 million compared to $14.1 in the prior corresponding period with Macmahon saying the rise came from improving margins across the group.
"Macmahon’s balance sheet is in a strong position, with a cash balance of over $100 million and no net debt as at 31 December 2009," the company said.
Macmahon said it was able to upgrade its full year profit forecast based on the strong first half performance and improving outlook.
The company now expects to report full year profit of $36 million to $40 million, subject to the volume and timing of new work.
“Construction had a very strong half, delivering a 192 per cent increase in earnings, compared to the prior corresponding period.
“It is also pleasing to see a much improved margin performance from Mining, which experienced a challenging fiscal 2009," the company said.
"With a robust pipeline of new work opportunities, we expect to deliver further profit growth in the 2011 financial year," chief executive Nick Bowen said in the statement.
Mr Bowen said the company’s turnaround was on both mining and construction.
"Confidence has returned to the mining sector, shown through an increase in tendering activities and higher production rates," he said.
"Government stimulus packages are providing ongoing support to the construction industry, and the resource infrastructure sector is being buoyed by growth in iron ore, coal and new LNG developments."
The profit increase came despite a 10.7% fall in revenue to $656.3 million. The company kept the first half dividend unchanged at 1.5c a share.
The company’s order book as of Tuesday was at $1.87 billion, having won over $1.25 billion since July 2009.
The shares ended steady on the day at 64c.
Leighton Holdings controls around 19% of the company’s issued capital.
Online jobs group Seek reported a 12.6% rise in net earnings for the December half year after sales rose more than 19%.
The company seems to be riding the emerging rebound in on line jobs that started around the middle of the December half year.
Seek said net profit hit $36.55 million, up from $32.5 million in the prior corresponding period.
Directors declared an interim dividend of 5.2c, up from 4.5c.
Revenue rose 19.2% to $130.366 million.
Seek joint chief executive officer, Paul Bassat, said in a statement yesterday that the company expected to capture "a disproportionately high share of the growth in the employment advertising market" as the economy improved, given its market position and structural trends favouring online over print.
Seek shares jumped 6.7% to close at $6.99, a rise of 44c on the day and easily outperforming the wider market on the day..
Despite posting a 4% fall in profit and warning of a second half dip in sales, shares in homewares groups, GWA International ended 2% higher yesterday.
GWA reported net profit of $25.544 million in the period on revenue of $343.77 million, up 9% on the prior corresponding period.
The shares added 8c to $3.11, a rise of 2.6% on the day.
Earnings before interest and tax (EBIT) were up 7.9% at $48.641 million.
GWA declared an unchanged full franked interim dividend of 9.5c.
The company said the result included a $3.4 million loss booked on the sale of its Rover mower business, reflecting Rover’s trading results and loss on the sale.
GWA managing director, Peter Crow
