2005 first half results release & presentation, page-5

$3 here we come :-) I love it when a plan comes together :-)

From Shaw.

Futuris bright on 1H results
10/02/05 By: Stephen Blaxhall

Futuris Corporation Limited (FCL) today reported a net profit of $66.554 million, for the six months to December 31, 2004 up from a $17.618 million loss in the same period a year earlier. Profit to shareholders before non-recurring items was $28.3 million, 32% higher than the 2004 first half underlying profit to shareholders of $21.4 million.

The company maintained the interim dividend at 4c per share but increased franking to 100% (75% franked in 2004).

“With the greater proportion of the Company’s earnings typically generated in the six months to June, the interim result is a strong start to the 2005 financial year for Futuris,” noted Stephen Gerlach the company’s, chairman.

Sales revenue was reported at $1,392.7 million, up 15% on the 2004 first half, which resulted in re-tax profit growing by 41% on an underlying basis, rising to $38.7 million.

Reported profit included a net gain of $38.3 million after tax from non-recurring items, which comprised a profit of $70 million arising from the sale of the Global Thermal Systems unit of Air International; a provision made in respect of an amended tax assessment issued by the Australian Tax Office ($25 million) and minor write -downs made following the sale of the Company’s hospital operations and in relation to Kareelya Property Group.

The momentum within the Company is apparent in the combination of good earnings growth and high levels of corporate activity,” commented Les Wozniczka, the company’s chief executive.

Mr Wozniczka noted that each of the company’s principal businesses has achieved double digit growth in underlying earnings, with him predicting that all operating divisions are on-track to meet their full year objectives.

The compny noted that Elders lifted its underlying EBIT contribution for the first half by 22% to $25.5 million and in addition, the growing insurance operations contributed investment interest of $4.6 million compared with $3.4 million in the 2004 first half.

Australian Agricultural Company (AACo), contributed earnings of $2.5 million to the first half result compared with the negative $0.4 million contribution for the six months to 31 December 2003.

Air International lifted its operating performance, with underlying EBIT increasing 28% to be $12.5 million, compared with $9.8 million in the 2004 first half.

Property generated underlying EBIT of $3.0 million for the period, down on the 2004 first half result due to reduced residential land sales.

The company said it expects second half results to reflect the timing and adequacy of autumn rains and the impact of AACo’s balance date SGARA adjustment, which could have a large influence on the results recorded for the financial year.

The company added that its underlying profit to shareholders for the 2005 financial year should fall within the range of current market expectations.