planning for option trade #2., page-11

re: nickoo wes Good 1/2 year result but profit warning for the next 1/2


WESFARMERS LIMITED No.130429600




Sydney - Tuesday - February 11: (RWE) - Wesfarmers Ltd lifted
net profit 24.7 per cent to $224.9 million in the six months to December
31 from $180.3 million for the first half of last year.
Revenues were up 3.2 per cent to $3.73 billion from $3.61
billion.
Earnings per share were 60.0c, up from 52.6c.
Interim dividend has been increased from 34c to 42c, fully
franked, payable on March 28 to shareholders registered March 7.
Directors attributed the result to increased earnings from the
hardware, energy, industrial/safety and chemicals/fertilisers
businesses, while the drought negatively affected earnings in the rural
services business and the half-owned railroad business.
The latest result included a net profit of $2.2 million on the
sale of non-current assets, compared with $7.7 million earned in the
same period last year.
"The directors are pleased with the half-year result, given the
difficult trading conditions existing in some sectors, particularly
rural," they said.
However, Wesfarmers warned: "The directors' current expectations
are that while they continue to anticipate an acceptable increase in
profit, it will be difficult for the group to achieve its original
full-year budget result this year (before bringing to account the
additional $56 million profit from the sale of Girrah).
"A number of external factors will affect the result, including
the seasonal autumn weather break across southern Australia, coking and
steaming coal shipments prices beyond April 1 2003 and trends in the
Australian retail environment."
Operating revenue for the Bunnings hardware merchandising
business rose 16 per cent to $1.8 billion.
Earnings before interest and tax (before goodwill amortisation)
of $196 million were up 35 per cent.
While the outlook for hardware in the second half was positive,
some softening in growth in both the retail and trade sectors was
expected.
Growth in the housing construction market was expected to slow
over the next six months after a strong performance in 2002.
Notwithstanding the recent softness of sales, Bunnings was still
expected to achieve its full-year profit budget.
Operating revenue of $476 million from the group's energy
businesses was slightly above the $475 million recorded in the
corresponding period last year.
EBIT (before goodwill amortisation) rose 16 per cent to $123.6
million from $107 million, due to growth in both coal and gas earnings.
Sales volumes for the first half from the Curragh coalmine in
Queensland were below expectations and those in the corresponding
period last year.
Earnings for the period were higher due to increased selling
prices.
The outlook for coal in the second half remained positive.
Coking coal sales volumes were expected to be strong, although
production and logisitics performance would be stretched.
Also, earnings in the fourth quarter would be hit by annual
price re-negotiations.
Domestic LP gas sales volumes and revenue were marginally below
the comparative period last year due mainly to weak autogas demand.
Overall, the gas activities recorded an above-budget result for
the half-year and the results were considerably above those for the
comparative period last year.
Full-year earnings, although dependent on international price
trends and shipment timing, were expected to be ahead of last year's
result.
Operating revenue from the industrial and safety businesses rose
19 per cent to $578 million from $485 million and EBIT (before goodwill
amortisation) were up 42 per cent to $55.5 million from $39.2 million a
year ago and marginally below budget.
Due to one of the worst national droughts ever experienced, the
first-half operating revenue of $694 million for the group's rural
services and insurance business was down 14 per cent.
EBIT (before goodwill amortisation) fell 2 per cent to $33.9
million from $34.6 million.
Wesfarmers fell $2.85 to $25.10 and traded