Pacific Brands posts $362 million loss but ANZ profit up: Midday roundup

Pacific Brands has said it expects net profit for the full year to be down after it recorded a net loss of $362 million, after deducting non-controlling interests.

The move also comes as sales for the company fell 19.6% to $684.7 million – the loss is much higher than last year’s $166.1 million loss.

In a statement, Pacific Brands said sales for the full year will be done as the company continues to struggle under weaker conditions.

“Due to the transformation and restructuring work completed, the company remains well placed to deal with the challenges ahead of it and then to benefit from any improvement in market conditions,” the company said.

The substantial loss was pinned on a writedown of the company’s underwear business.

“There were also restructuring costs associated with the Pacific Brands 2010 transformation program of $13.4 million,” it said.

ANZ records $1.48 billion profit

ANZ has recorded a 4.1% increase in first half profit to $1.48 billion, with revenue up 5% to $4.3 billion, as the company says it is still well positioned to take advantage of new opportunities.

 “Our performance in the first quarter shows that we are well positioned in a challenging environment with a unique business strategy and the financial strength to take advantage of organic and strategic growth opportunities during 2012,” chief executive Mike Smith said in a statement.

However, Smith also said funding costs are rising and volatility caused by the European debt crisis is still persistent.

“There will not be a return to the level of credit growth that banks experienced pre-crisis for the foreseeable future, particularly in our major domestic markets in Australia and in New Zealand, as consumers reduce their gearing and businesses pace investments,” he said.

Shares rise after positive US leads

The Australian sharemarket has opened higher this morning after good leads from the United States, where positive jobs figures have resulted in a modest rally.

The benchmark S&P/ASX200 index was up 10.2 points or 0.2% to 4192.1 at 12.00 AEST, while the Australian dollar was trading at $US1.07c.

In the United States, the Dow Jones Industrial Average rose 1% to 12,904.

Sims swings to loss on $614 million impairment charge

Sims Metal Management has swung to a first-half loss of $556.5 million, driven by $614 million writedown on pre-GFC acquisitions.

Revenue lifted to $4.58 billion, from $3.95 the previous year, Sims said.

The company declined to give guidance by chief executive Daniel Dienst said deep sea ferrous export prices firmed in December and February, but softened in early February.

Spotless first half profit falls, but revenue lifts

Catering and cleaning company Spotless has posted a 5.2% fall in first-half profit, but says revenue lifted by 5.1% over the period.

“Revenue mix by sector saw a strong uplift in the resources sector as strategic growth plans develop successfully for the provision of integrated services to mining clients and customers,” Spotless said.

The company is currently talking with Pacific Equity Partners about a potential takeover.