Earnings season wrap-up: 29 August
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Nicholas Grove is a Morningstar journalist.
Companies covered in this report:
Transfield's profit and dividend above forecast, CEO resigns
Transfield Services (TSE) on Wednesday announced a 17.3 per cent year-on-year fall in operating profit to $106.6 million, in line with guidance provided by the company in April.
Full-year statutory net profit for the year stood at $84.8 million, the industrial services company said.
"After a difficult and challenging past two years, Transfield has produced a net profit after tax of $85 million, significantly above our conservative forecast," Morningstar senior equities analyst Ross Macmillan said.
Operating cash flow for the year rose 49 per cent to $123 million, the company said.
Earnings per share (EPS) fell 23 per cent to 15.6 cents due to a rise in the number of shares on issue, Transfield said.
Transfield declared a final dividend of 9 cents a share, unfranked and payable on 24 October 2012. This brought total dividends for the year to 14 cents, ahead of Morningstar's forecast of 11 cents.
"Our focus on improving capital management systems and making the business more efficient is reflected in our solid cash result," Transfield Services CEO Peter Goode said.
"Global economic conditions are volatile, but we remain confident that with a more efficient business, a healthy balance sheet, strong footholds in growth markets and a new focus on providing higher-value services to our clients, we are well-placed."
In a statement, Transfield said its financial position remains strong with an extended three-year debt maturity profile and gearing at 32 per cent.
Also on Wednesday, Transfield announced that Goode will resign from the company, effective 30 September 2012.
Graeme Hunt, presently a non-executive director of Transfield, will be appointed as interim CEO on that date.