National Australia Bank believes its third quarter result has performed well despite volatile markets overseas, especially in Europe.
The company recorded cash earnings of about $1.1 billion, with bad and doubtful debts coming it at $510 million for the three months to 30 June, a figure it says is below the first-half average.
“In the June quarter NAB delivered solid, sustainable business results, improved customer satisfaction and remained financially strong during what was a period of continued uncertainty in global financial markets,” NAB chief executive Cameron Clyne said in a statement.
The company’s Tier 1 capital ratio was 8.79%, down from the 9.09% recorded during March. NAB shares have fallen about 0.15% to $25.10 after the results were announced.
It also said personal and business lending growth helped increase revenue, with the business banking division increasing its market share to 22.3%.
In a separate statement, NAB said it has been granted another extension in its bid for AXA Asia Pacific. The lender said the parties have agreed on a new deadline f 9 September to satisfy the ACCC’s concerns.
Meanwhile, Cochlear has announced a 19% rise in full-year profit to $155.2 million, up from $130.5 million in the previous year, and says its new fifth generation hearing device will help 2011 growth.
Revenue was up 6% to $734.8 million, with EBITDA also up 19% to $243.6 million. Basic earnings per share were up 18% to $2.75.
“The launch of the Nucleus 5 has resulted in a game change across multi dimensions, including recipient hearing performance, miniaturisation, scalable manufacturing and the building blocks for scaling the clinical pathway,” Cochlear said in a statement.
“Nucleus 5 will continue underpinning growth in the 2011 financial year, and software enhancement available towards the end of the calendar year will facilitate upgrade processor sales.
In the mining sector, Alumina has said the benefits of a rebound in demand for aluminium and alumina have been offset by global supply increases. IT recorded a $US44 million net profit after tax.
“The overall outlook for the supply and demand for alumina is a balanced position, with overall growth in demand for 2010 upgraded from 10% to 12%. There is, however, a likelihood of some volatility in pricing as China manages its supply and demand position,” the company said in a statement.
“Global alumina demand is forecast to grow at 12% for 2010 and pricing has improved,” chief executive, John Bevan added. “The industry trend toward shorter and spot contracts for alumina has continued and the third party market for alumina sales to non-integrated aluminium producers continues to grow.”
Share market opens flat after weak Wall Street lead
The Australian sharemarket has opened flat today, following a weak lead from Wall Street where investors are awaiting possible remarks from the Federal Reserve regarding the economic recovery.
The benchmark S&P/ASX200 index was down32 points or 0.72% to 4561.9 at 12.20 AEST, while the Australian dollar moved down slightly to US91c.
ANZ shares lost 1% to $22.88 as Commonwealth Bank shares fell 0.2% to $52.95. Westpac fell 1.1% to $23.54, as AMP gained 0.4% to $5.56.
Back in the mining sector, gold and copper miner Ivanhoe Australia has announced to the Australian Securities Exchange it will raise $213 million through a one-for-four non-renounceable pro rata entitlement offer.
“This equity raising will facilitate Ivanhoe Australia’s development plan, including planned first production of molybdenum and rhenium ores from Little Wizard in 2011, and Merlin during 2012,” Ivanhoe Australia chief executive Peter Reeve said in a statement.
“The Merlin deposit is the highest grade molybdenum and rhenium project known in the world today, and we expect that ongoing development will deliver value to shareholders. The Equity Raising includes a free attaching Option, reflecting our belief that there is significant upside in ongoing development and further exploration”.
In other mining sector news, the Queensland Coal Industry Rail Group has made a bid of $5.2 billion for the state’s coal rail track network. However, it is understood this offer will include a tight timetable for the Government to enter discussions with the miners.
Bradken net profit up 9.6%
Mining and engineered products provider Bradken has reported its net profit grew by 9.6% during the financial year and expects further growth.
Net profit was $70.4 million in the year to 30 June, while revenue actually fell 17.6% to $1.01 billion. Managing director Brian Hodges said the second half of the year was crucial.
“Bradken’s business strategies remain unchanged, with the focus on key strengths in the design, manufacture and supply of consumable products to the mining, energy and rail industries,” he said.
“We will continue to take advantage of growth in our core resources and energy markets, look for complementary acquisitions and improve margins through capital expenditure and vertical integration initiatives.”
On Wall Street, invesotrs backed off due to speculation the Federal Reserve will announce new measures to stimulate the economy, alongside a poor performance from HP after the company recovers from chief executive Mike Hurd’s resignation. The Dow Jones Industrial Average was up 45.19 points, or 0.42%, at 10,698.75.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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