Qantas doubles profit, Pacific Brands sheds 120 jobs: Midday Roundup

Just weeks after announcing it will sack 1,000 workers, Qantas has announced a net profit after tax of $250 million, up by 115% from the previous corresponding period, although it was below market expectations for $322 million.

Qantas announced that it also expects the yield in the first half of the 2012 financial year to be higher than expected than the previous corresponding quarter.

“At this stage, yield in the first half of FY12 is expected to be higher than the first half of FY11,” the airline said in a statement. “The group expects to increase capacity in the first half of FY12 by 8% compared to the first half of FY11, while maintaining flexibility.”

Chief executive Alan Joyce said the result was reached even when experiencing difficult trading conditions.

“This result reflects the strength of the Qantas Group’s portfolio and is our best performance since the global financial crisis,” he said in a statement.

“We achieved the result while overcoming significant external and operational factors, including a series of natural disasters, a 28% increase in average fuel prices and an underperforming international business.”

Pacific Brands to shed 120 jobs

Pacific Brands has announced it may slash 120 jobs as the company continues to make savings after recording a loss for the year of $132 million.

The move comes two years after the company first announced a restructuring that resulted in the loss of hundreds of jobs.

According to Fairfax, chief executive Sue Morphet said the job cuts would mostly occur in Sydney, and that some workers would be offered new jobs in Melbourne.

The announcement also comes as the company recorded a loss of $131.9 million, down from a profit of R52.7 million in 2010.

Sharemarket rises on strong US lead

The Australian sharemarket has risen higher this morning after a strong lead from the United States where weak economic data has prompted discussions over whether the Fed will step in to boost the economy.

The benchmark S&P/ASX200 index was up 24 points or 0.6% to 4198.3 at 12.10 AEST, while the Australian dollar was flat at $US1.05c.

AMP shares rose 0.71% to $4.23, while Commonwealth Bank shares rose 0.6% to $47.29. Westpac rose 0.3% to $20.12, while ANZ rose 0.05% to $19.83.

In the United States, the Dow Jones Industrial Average rose by 322 points or 2.97% to 11,176.

Asciano posts full year profit

Asciano has recorded a $145.2 million profit for the year, compared to last year’s loss of $975.9 million.

“We are pleased to be able to report an improved operating result despite a significant number of negative external factors impacting our three business divisions over the 12-month period,” said chief executive John Mullen.

“The impact of floods in Queensland in Q2 and Q3, the aftermath of which continues to impact our coal and rail divisions, coal availability constraints and congestion in the rail network in the Hunter Valley, significant industrial relations activity in our ports division and the overall downturn in economic activity in Australia have impacted both revenue and margins across the three divisions.”

Moody’s cuts Japanese credit rating

Moody’s has cut the credit rating of the Japan Government to Aa3, targeting a large budget deficit and debt.

“Over the past five years, frequent changes in administrations have prevented the Government from implementing long-term economic and fiscal strategies into effective and durable policies,” Moody’s said in a statement.