DJ MARKET TALK: Stronger Aussie Dollar Weighs On Billabong
0031 GMT [Dow Jones] Billabong (BBG.AU) reiterates profit guidance on a constant currency basis of 10% growth, or 5% with an impairment charge for the prior year stripped out, but the rising AUD is weighing heavily on the retailer. As of August, Billabong was assuming an average monthly exchange rate of A$0.83, but now the company's modeling on A$0.92. At the new rate, net profit growth would be down 6% on the prior year when excluding the prior year's A$7.4 million after-tax impairment charge. Billabong says each 1 cent movement in the average monthly Australian dollar-US dollar exchange rate for the remaining eight months of the year above or below the A$0.92 cent level will change reported net profit by A$500,000. Stock down 1% at A$10.84.(CLK)
