Industrial chemicals, explosives and consumer products company Orica Ltd
(ASX:ORI) says it still expects to report net profit after tax growth in the 2009 financial year.
CEO Graeme Liebelt told investors that while the company remains vigilant about still uncertain external economic conditions, Orica maintains its guidance for profit to be higher than that reported in 2008.
Mr Liebelt says the company’s mining businesses continue to see very mixed conditions in the second half, with the quarry and construction sector experiencing a very low level of activity and has probably bottomed.
He says Orica’s consumer products business is being impacted by weaker consumer sentiment, saying that since October last year, the company has seen the paint market slow down, which may have not quite bottomed out yet.
Mr Liebelt says so far Orica sees no signs of a sustainable broad based recovery, and there is little sign of benefit from the various stimulus packages that have been proposed by governments in response to the economic crisis. Orica’s 2008 net profit was $539.6 million.
Miner Oz Minerals Ltd (ASX:OZL) reports that contained copper production at its Prominent Hill mine was 27,159 tonnes for the quarter, while contained gold production came in at 18,351 ounces.
Oz says production at its Prominent Hill mine is on track to meet previous guidance of between 85,000 tonnes and 100,000 tonnes of copper, and 60,000 to 70,000 ounces of gold.
Prominent Hill copper and gold mine was not included in the sale of assets to China Minmetals earlier this year to help pay off debt.
The company says all bank loans have been repaid in full and refinancing issues resolved.
Oz Minerals also sold its Martabe gold-silver project in Indonesia to Hong Kong listed China Sci-Tech Holdings for US$211 million in late June. Oz Minerals posted a $2.5 billion loss in 2008.
New Zealand based, Sky City Entertainment Group Ltd (ASX:SKC) says it expects to exceed market expectations for net profit after tax for the 2009 financial year.
The gaming company says it now expects net profit after tax to be in the range of $113 million and $116 million for the 2009 year due to improved fourth quarter revenues and earnings across its core casino operations in Auckland, Adelaide and Darwin.
In April the company forecast net profit after tax of $99 million to $106 million for the year and indicated it was on track to achieve a result comfortably within that range.
The company says it expects underlying and reported earnings before interest, tax, depreciation and amortisation for the 2009 year to be approximately $300 million. Looking back over the past five years, Sky City Entertainment Group’s profit highlight was in 2006.
