The US Federal Reserve has virtually conceded it will need to provide further stimulus to the economy, despite already near-zero interest rates. An already bloated balance sheet will get bigger as the central bank buys more government securities to try and avoid the dreaded double dip recession that hovers menacingly over Wall Street.
A record first half profit of $212.7 million for Coca-Cola Amatil represented a 12.1% increase on the prior comparable period. Operating earnings (EBIT) increased 10% to $373.8 million. This was another good outcome for the company as the first half year in 2009 had been very strong.
A combination of nips and tucks has seen Myer get its full year sales across the line with a 0.7% increase to $3.2 billion. The company announcement included the surprise news that it would upgrade its operating earnings guidance for the 2010 financial year.
1H10 was a strong start to the year with RIO reporting earnings ahead of consensus. The company reported US$5.8 billion against an expected US$5.5 billion. The strong result was due to higher exports of iron ore at higher prices and a much higher price for copper. The LME price of copper in 1Q10 was 111% higher than 1Q09, and 2Q10 price was 51% higher than a year ago. The Iron Ore business delivered a profit of US$4.1 billion and Copper US$1.1 billion.
Chief executive David Thodey has tired of watching customers walk out the door in their thousands. The time has come, he says, to do something about it. That has been the genesis of Telstra’s new strategy that will sacrifice operating profit margin to pursue new customers and retain existing ones in an unabashed tilt at regaining lost market share. The company is guiding the market to expect operating profit (EBITDA) to decline by a high single digit percentage in 2011 on flat revenue.
Four major contract wins, a successful equity raising, improved operating metrics and a small acquisition. Tox Free Solutions has had a big year and, more importantly, is well positioned to repeat its effort in 2011.