Ausgroup results just out. Somewhat worse than I expected. Revenue decreased 34.1% year-on-year. Net profit decreased 32.5% EPS fell from AUD 2.7c for HY09 to 1.3c for HY10 (annualized P/E about 17.5) Net gearing fell from net cash to 0.051 NAV/share (and equity) declined marginally from AUD 28.8 to 28.7 Outlook guidance also not very optimistic: - Strong AUD impacted competitiveness against Asian competitors - Earnings expected to remain weak in next quarter - high pressure on margins in AU minerals sector - O&G: expected to be flat in SG. Potential LNG projects in AU seems to be the main bright spark
With A$490 Million contracts in the order book, AUSGROUP will recover very well in 2010 from its low base in 2009. Majority of earnings would be realised after 1Q 2010.
