Reporting season continues
The company profit reporting 'season' is underway. Elsewhere in Investment Matters, we look at the results for companies in which First Samuel has invested for you.
Here, I give some comments on other interesting companies:
NAB, one of the "big-4", announced a 3% fall in profit from a year earlier, in its third quarter trading update.
JB Hi-Fi, an electronics retailer, boosted its profit by 12% to $152m. It's all about spending on technology and gadgets, loosing a competitor (Dick Smith), plus the government's immediate tax write-off of $20,000 (to end on 30-Jun-17).
Santos, a gas production and exploration company, announced a US $1b write-off associated with its Gladstone LNG project. Total write-downs for the past three years are greater than US $5b.
Aurizon, a coal hauling and railway owner and formerly named Queensland Rail, recorded a 16% fall in underlying net profit to $510m. With a dividend payout of 100% of underlying NPAT, it is another company facing dividend cuts in coming periods.
Ansell, a protective equipment, glove and condom maker, had a 15% fall in profit to US$159m, with currency having a major impact (in constant currency, profit was down 2.5%). It also announced it is considering selling its condom division.
Domino's Pizza, a fast food chain, increased underlying net profit by 44%, to $92m. It remains ridiculously expensive.
CSL, a biopharmaceutical company, reported a 10% decrease in net profit to US$1.2b. But it wasn't as bad as the headline appeared - underlying profit, in constant currency terms and removing impact of an acquisition made during the year, was up 5%.
Crown Resorts, a casino operating company, announced a 23% fall in normalised net profit, to $406m.
AMP, a finance company, reported a 10% fall in underlying profit.