Woolworths profit rises 6% but profit outlook slips: Midday Roundup

Supermarket giant Woolworths has recorded a 6% increase in net profit after tax to $1.16 billion, with revenue up 4.2% to $28.42 billion, although the company admits trading conditions remain “challenging”.

The company amended its full year profit guidance, saying growth is expected to be between 5-8% due to the impact of floods and New Zealand earthquakes.

The company was previously expecting 8-11% growth.

Supermarket earnings rose by 8.1% in the six-month period while food and liquor sales grew by 3.5% to $18.7 billion.

Big W earnings fell 17% while consumer electronics division earnings declined by 35.9%.

The company said the market is expected to remain competitive “with a less confident consumer who is spending less whilst having a greater propensity to save”.

“This combined with the uncertainty around the level of inflation going forward, the risks of future interest rate rises and a continuing strong dollar provides a platform for a potentially subdued trading environment, particularly in the discretionary sectors,” the company says.

Woolworths confirmed it will acquire wine retailer Cellarmasters Group from Archer Capital for $340 million.

Harvey Norman profit falls 16.5%

Retail giant Harvey Norman has recorded a 16.5% decline in profit due to deflation, the strong Australian dollar and a frugal consumer environment.

The company recorded pre-tax profit from continuing operations of $198.6 million.

Chairman Gerry Harvey said the company was robust and that it was “well placed to capitalise on any resurgence in the discretionary retail sector”.

“The franchising operations segment continued to underpin the overall performance of the group,” he said.

Shares flat as US trade remains weak

The Australian share market opened flat this morning due to continued unrest in the Middle East, where Libya has halted nearly three-quarters of its oil production.

The benchmark S&P/ASX200 index was up two points or 0.04% to 4811.5 at 12.10 AEST and the Australian dollar hovered just over parity this morning.

AMP shares lost 0.37% to $5.45 as Commonwealth Bank shares fell 0.32% to $52.56. NAB lost 0.23% to $25.74 an d ANZ gained 0.96% to $24.31.

Crown profit rises 33%

Crown recorded a 33% increase in first-half net profit with non-gaming and main floor gaming contributing most of the rise.

Profit gained 32.8% to $153.1 million, the company said, while normalised profit was up by 13.9% to $165.8 million.

Chief executive Rowen Craigie said in a statement the result shows a “solid performance in the non-VIP businesses while the VIP results reflected the competitive impact of the two new integrated resorts in Singapore”.

Assange to be extradited to Sweden

WikiLeaks founder Julian Assange has been ordered to be extradited to Sweden by a London court.

Judge Howard Riddle ruled that Assange must return to his country of residence, arguing against a defence that he would not receive a fair trial.

Assange is set to face accusations of sexual misconduct. 

“I must order Mr Assange be extradited to Sweden,” the judge said.

Assange attacked the verdict, telling reporters the entire trial was a “rubber-stamping process”.

“There was no consideration during this entire process as to the merits of the allegations made against me,” he said.

Wall Street stocks fall on Libya unrest

The American stock market has fallen for a third consecutive day due to unrest in the Middle East, where restrictions on oil exports from Libya caused prices to rise above $US100 a barrel.

Dow Jones industrial average fell 55 points or 0.5%, to 12,050.