Category: Business, Economics and Finance / Company News / Media
Seven Group bounces back to black after massive loss
Wednesday, 3 Aug 2016 10:48:54 | Stephen Letts
Kerry Stokes' Seven Group reported a net profit of $217 million for the full year. (AAP: Dean Lewins)
The Kerry Stokes-controlled media, mining and investment conglomerate Seven Group has returned to profitability after last year's big write-down ravaged loss.
Seven Group reported a net profit of $217 million for the full year, a $557 million turn around on last year's rivers of red ink.
However, it was not all good news.
On an underlying basis - with one off items stripped out - profit fell 10 per cent to $184 million.
The result was helped by increasing demand for spare parts in its WesTrac Caterpillar dealerships as mining production stepped up.
WesTrac also secured a large order from Gina Rinehart's Roy Hill mine, the only major new mine to open during the year.
Revenue for the group edged up marginally by 2 per cent, while underlying earnings before interest and tax (EBIT) fell 4 per cent reflecting tighter margins as well as reduced contributions from the group's 41 per cent holding in Seven West Media and 47 per cent stake in Coates Hire.
'Softer trading', media arm takes hit
Seven West Media reported a slight drop in underlying earnings yesterday and warned of "softer" trading conditions this year.
"Trading conditions in the mining and industrial services sector remain competitive with ongoing cost reduction initiatives," Seven Group chief executive Ryan Stokes said, despite an improvement in commodity prices since January.
Mr Stokes said a significant increase in new equipment sales to resources companies was not expected and forecast a slight decline over the next 12 months as miners shift their demand to second-hand equipment and spare parts to keep existing machines working.
The news was not much better in the media arm of the business.
"(Seven West Media) sees the advertising market having a flat to negative low-single-digit growth in television and a continuing trend for its publishing businesses resulting in ... earnings guidance for full-year 2017 of 15 to 20 per cent down year-on-year," Mr Stokes warned.
"Overall we are cautiously confident that conditions will stabilise and anticipate underlying EBIT in full-year 2017 will be in line with the current year."
Seven Group paid a full-year dividend of 40 cents a share, unchanged from last year and said it is committed to continuing its buy-back program, subject to market conditions.
Investors liked the result, with Seven Group opening 40 cents, or 6 per cent, higher at $7.07 per share.
- About Us
- |
- Terms of Use
- |
- RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.