Wesfarmers Limited
(ASX:WES) CEO Richard Goyder says the company is performing consistently with its profit guidance at this stage in the financial year, as its retail businesses continue to grow.
Mr Goyder says Wesfarmers insurance and retail business, including Target, Bunnings and Coles, has performed well to start the current financial year.
He says that the performance is underpinned by good transaction growth owing to better customer value, while the insurance business is benefiting from a stronger underwriting performance and lower claims experience.
Despite the positives, Mr Goyder warned shareholders the company’s industrial businesses have had a mixed start to fiscal 2013, affected by lower commodity prices and market slowdowns.
The impact of lower coal prices, higher taxes and the strong Australian dollar will significantly affect resource earnings according to Mr Goyder.
Wesfarmers posted net profit $2.1 billion for the 2012 financial year.
