Seven Group Holdings net profit up to $718 million, Facebook valuation surges: Economy Roundup

Seven Group Holdings has recorded a $718 million net profit for the two months to 30 June, saying the company is set for some solid growth over the next year.

The company, which was formed in April after Kerry Stokes combined both his mining and media units, had operating activity dated from April in the financial results. AS a result, there was an accounting gain of $726 million noted.

The merger included the Seven Network and WesTrac, the Caterpillar dealership owned by Stokes. Profit before tax was $39 million, while profit after tax was $28 million, the company announced.

Meanwhile, construction work grew by 3.5% in the June quarter, according to the latest figures from the Australian Bureau of Statistics.

The ABS revealed this morning total construction was valued at $41.6 billion in the June quarter, compared to the $40.2 billion recorded in the March quarter. Total building work was at $21.4 billion, while engineering work came to $20.2 billion.

Suncorp Metway has recorded a net profit after tax of $780 million in the year to 30 June, up from the $348 million recorded during the 2009 financial year.

“Suncorp is making good progress in recovering from the challenges that became apparent during the global financial crisis,” chief executive Patrick Snowball said in a statement.

“Over the course of the financial year, we stabilised the group, strengthened its balance sheet and capital position, appointed a new executive team and laid the foundations for sustainable growth and profits by clarifying our strategic direction and restructuring operations.”

Margins from its insurance business were at 9.6%, with the company saying it stands to improve on that by at least three percentage points during 2012.

Asciano recorded a full year loss this morning following from impairment charges, but the company said it expects growth during 2011.

The firm’s loss tripled to $976 million, compared to the 2009 result, with EBITDA before significant items at $724 million.

“We expect continued growth from the resources and bulk commodity sectors but remain cautious on the economic recovery in industrial and consumer markets,” the company said in a statement.

“Overall we expect earnings growth in the 2011 financial year and are comfortable with market EBIT consensus at this point in time.”

Shares down after weak Wall Street lead

The Australian sharemarket has opened lower this morning following a disappointing night on Wall Street, where stocks fell due to shocking news from the real estate market that new home sales fell to their lowest point in 15 years.

The benchmark S&P/ASX200 index was down 38 points or 0.87% to 4342.3 at 12.20 AEST, while the Australian dollar was also down to US88c.

ANZ shares were down 0.8% to $22.47, while Commonwealth Bank shares fell 1.1% to $48.91. Westpac lost 0.5% to $21.32 as NAB lost 0.8% to $23.00.

Pacific Brands has recorded a full-year profit of $52.7 million for the 12 months to 30 June, compared with a loss of $234.5 million in the previous corresponding period, with revenue also up 11% to $1.74 billion.

“Earnings are expected to benefit from the impact of off-shore sourcing and improved foreign exchange rates which are largely hedged, but will be impacted by increasing product costs, temporary supply constraints and increases in the cost of doing business,” the company said in a statement.

“Underlying sales performance is expected to improve in financial 2011, however reported sales growth will continue to be impacted by past divestments and ongoing brand discontinuations.”

Slater & Gordon has filed a class action against Oz Minerals, alleging that the company failed to properly disclose its debt in 2008, thus leading to a drop in share prices.

The firm said in a statement it is acting on behalf of “mum and dad’ investors, who together claim to have lost about $18 million.

Engineering and project management group Ausenco has recorded a first half loss of $19.02 million in the six months to 30 June, down from a profit of $12.16 million in the first half of 2009, saying the result reflects poor market conditions and the strong Australian dollar.

“Factors contributing to this loss include longer than anticipated project commitment delays, a relatively strong Australian dollar and the investment in strategic growth initiatives,” chief executive Zimi Meka said in a statement.

“We invested $18.9 million in a number of one-off initiatives as part of our strategy to build for long-term growth.”

Facebook stock surges on IPO expectations

As reported by the Financial Times, Facebook is now being valued at $US33.7 billion as investors move to take up stock ahead of a possible IPO.

However, Bloomberg has previously reported Facebook will not consider an IPO until 2012 in order to capitalise on growth and pursue new products.

Elsewhere in the United States, stocks fell overnight due to overwhelmingly disappointing housing data which revealed existing home sales fell to a 15-year low, bringing up fears of a longer economic recovery.

The Dow Jones Industrial Average dropped 133 points or 1.32% to 10,040.45.