As forecast by the company, paint maker Wattyl Ltd has returned to the black as it moves closer to being absorbed by US paint group, Valspar.
Wattyl is subject to a $142 million takeover offer from Valspar at $1.67 a share.
Wattyl said in what will be its last full year profit statement that net profit was $5.15 million for the year to June 30, compared to a loss in 2009 of $1.5 million.
Wattyl updated its earnings guidance on August 4.
The 2010 result includes a $1.3 million charge due to recent tax legislation changes in New Zealand.
Wattyl said that 2010 sales in Australia rose less than 2% to $346.4 million over 2009, despite reduced market volumes in the architectural and decorative sector.
Wattyl said costs were well controlled following the implementation of cost management initiatives in 2009, which contributed to improved earnings.
Sales in New Zealand fell 1.7% to $40.1 million due to continued challenges in the housing sector across the Tasman.
Wattyl did not declare a final dividend.
Wattyl shares ended steady at $1.655 yesterday.
Mining services group, Boart Longyear Ltd has also matched earlier upgraded guidance with news that it returned to the black in the June 30 half.
The company also yesterday upgraded its guidance for the full year’s results.
The company said after tax net profit for the six months to June 30 was $US32.71 million ($A37 million), up from a $US5.36 million ($A6 million) loss in the first half of 2009.
Boart Longyear lifted its full year revenue guidance for 2010, which it expects will now be 40% above 2009, while earnings before interest, tax, depreciation and amortisation (EBITDA) were expected to be $US205 million ($A231.2 million), up 85%.
The company said full year revenue was now expected to be $US1.37 billion, up 40% over 2009
But that didn’t inspire the market and the shares shed 17c, or 5.8%, to $3.00 yesterday.
"Boart Longyear’s operating trends continue to improve and demand for products and services continue to be robust," the company said in a statement to the ASX.
Boart Longyear declared an interim dividend of 2.1c per share, 35% franked, after omitting an interim payout last year.
Total revenue for the half-year was up 48% to $US685.41 million ($A773 million), as the global mining industry recovered from the GFC and the economic slide’s impact on demand and commodity prices.
"The period-on-period increase is primarily attributable to the improvement of the worldwide economic outlook that has positively impacted our drilling services and products businesses," Boart Longyear said.
Chief executive Craig Kipp said that while company growth appeared to have stabilised, it continued to see modest improvements in margins, pricing and utilisation.
"This significant improvement in earnings represents a return to Boart Longyear’s historic earnings growth, and gives us the ability to both increase our 2010 earnings guidance and to pay an interim dividend," Mr Kipp said.
"Boart Longyear’s 2010 first half results reflect strong growth in both its Drilling Services and Products businesses and also across all global regions," the company said in yesterday’s statement.
"The Products business’ backlog was up 144 percent at the end of the first half of 2010 compared to the same period last year. Drilling Services’ rig utilisation rose to over 70 percent at the end of the first half of 2010, compared to 52 percent utilisation in the same period last year.
"The Company has hired over 1800 full time employees since January 2010, taking the current global workforce to 8,800," it said.
Investors obviously wanted a bit more from the outlook.
Victoria-based Patties Foods has revealed a strong, 42.2% rise in full-year net profit for 2010 with the added expectation of a further improvement in the 2011 year.
Patties Foods, which makes Four’ n Twenty pies, Patties Pies and Herbert Adams pastries, told the ASX yesterday that net profit for the 2010 financial year was $16.8 million, up from $11.8 million in 2008/09.
Underlying earnings before interest and tax (EBIT) rose 29% to $27.2 million in the year, up from $21.0 million.
Sales rose 9.9% to $196.9 million from just over 4179 million in 2009, so there was an expansion of profit margins in the year.
The company declared a final dividend of 3.5c a share for a total 6.5c a share fiscal 2010, up 44% from 4.5c paid in the 2009 year.
"Our immediate focus is to continue to drive increased earnings by concentrating on the fundamentals: enhanced brand strength, innovative new products and improved manufacturing efficiencies," Patties chairman Chris Riordan said in a statement.
Patties said there was scope for further impr
