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Aussie shares tumbled late in day despite being firmly higher at lunch, with the market trading between highs and lows nearly 100 points apart. The mid-cap miners were down heavily, while only Telstra, which had been out of favour in recent days following its half-year results, showing any resistance.

At the close, the All Ords was down 51.0 to 4,614.9, while the ASX/200 retreated 54.4 to 4,594.1. Over 2.8 billion shares worth around $5.8 billion had changed hands.

The Banks and Financials sector was in a strong position, up 0.6% at lunch, however tracked lower through the day to finish 0.8% below the line.

CBA led the banks lower, down 82c to $53.18, while NAB, after being heavily sold in recent sessions was the only one to make ground, up 8c $24.69.

Westpac lost 7c to $25.69, while ANZ, which releases its first quarter trading update tomorrow, gave up 1.2%.

Insurance Australia Group was up 3c to $3.98 on a strong first half profit result. The company also confirmed an upgrade to its annual insurance margin.

Suncorp fell 19c to $8.43 following a recommendation downgrade by Citi, which voiced concerns about the insurers near term outlook.

Perpetual gained $1.01 or nearly 3% by lunch, tumbled in the afternoon, to finish down 9c, or 0.3% to $36.44 after reporting a rise in first half profit. However, the fund manager was cautious on the immediate outlook.

Property Trusts were 1.1% weaker, with Goodman Group down 1.5c, or 2.5% to 59c.

Lend Lease spent the day in a trading halt, having announced an $800 million capital raising to fuel growth for the company.

Telstra rallied 5c, or 1.7% to $3.01, having spent most of the week around the levels seen last February, in the midst of the GFC.

The broader Telecommunications sector added 1.4%.

Materials and Resources were up 0.4% at lunch however finished down 1.7%.

BHP Billiton lost 43c, or 1.1% to $40.45. Rio Tinto was down $1 to $69.40. Meanwhile, Fortescue Metals retreated 12c to $4.58, a 17c turnaround since lunch.

On the downside, Iluka slumped 13c, or 3.5% to $3.62. The mineral sands explorer posted an annual net loss for 2009 voiced concern about demand in 2010

OZ Minerals lost 2c to $1.03 despite posting a net loss for calendar 2009.

The gold plays were down heavily. Newcrest lost 4.7% to $30.75, while Lihir Gold, lost 4.1% to $2.58.

Steel makers Bluescope and Onesteel lost between 1% and 1.2%.

Energy stocks were 1.5% lower with Woodside Petroleum retreating 22c to $43.10. Origin slumped 30c, or 1.8% to $16.50 after posting a 94% drop in first half profit. However, the group offered a rosier earnings outlook.

Consumer Discretionary stocks down 0.6% although still managed gains by a number of well known stocks. Among the heavyweights News Corp added 9c to $17.71, while Harvey Norman rose 1.6% to $3.77.

Pacific Branks gave up 3.5c, or 3.1% to $1.11, despite being upgraded by Deutsche Bank.

Industrials gave up 2.5%. Downer EDI lost 36c, or 4.3%. The company posted a small increase in net profit in the first half of fiscal 2010, and has reaffirmed its full year profit guidance.

Toll was smashed after posting disappointing earnings results. Its shares slumped $1.55, or 17.9% to $7.10 each.

Consumer Staples slid 1.5%, led lower by a 59c decline in Wesfarmers. On the flip side, Coca-Cola Amatil gained 7c to $11.09.

Meanwhile, Goodman Fielder lost 4.2% to $1.48 despite reporting a 25% increase in first half profit.

Around the region, the Nikkei 225 was down 84.3 to 10.114.5, while the NZSE50 rallied 20.8 to 3,151.7. The Hang Seng gave up 155.9 to 20,311.8 and the Straits Times Index 17.2 lost 2,745.0

Spot gold was trading at US$1090.95 per ounce, while the Aussie was buying US$0.8886.

Toll shares slump on disappointing earningsToll Holding shares had slumped over 13% by mid-afternoon, after saying its profit fell 32% to $107 million for the six months to 31 December 2009 against the previous corresponding period. Looking ahead, Toll said trading conditions in the Australian businesses improved progressively through the second half and from early indications, this trend would continue in 2010.

At the end of the day, Toll shares has slumped $1.55 to $7.10.

The sun shines on IAG
Insurance Australia Group said its first half profit had surged to $329 million, from just $4 million in the previous corresponding period. The insurer said the catalyst for the result was less storm activity than normal, coupled with favourable credit spreads.

At the end of the day, IAG shares were trading up 3c to $3.98 each.

OZ Minerals posts $517m loss
OZ Minerals, which last year was forced to sell just about everything except its Prominent Hill mine as it struggled under huge debt, has posted a $517.3 million loss for the full year 2009, although still improved on 2008’s $2.5 billion loss. The miner said profits for the group were impacted by losses recorded on the sale of four mines to China Minmetals Non-Ferrous Metals.

By the close, OZ Minerals shares were trading down 2c to $1.03.  

Iluka still struggling
Iluka Resources reported a loss for the 2009 full year of $108.6 million, after posting a profit of $77.5 million in the previous corresponding period. The company said the result reflected restructuring and impairment charges as it grappled with the effects of the global financial crisis.

At the finish, Iluka shares were down 13c to $3.62.

Ramsay profit leaps 46%
Ramsay Health Care reported a 46.2% rise in post-tax profit to $78.6 million for the six months to 31 December 2009. The private hospital operator also said that the future is looking rosy, with strong prospects for expansion in Europe and a broad-based increase in demand for health care supporting the company’s growth.

At the end of the day, Ramsay shares were trading down 12c to $12.46 each.
 
Perpetual profit climbs as GFC abates Perpetual reported a 246% surge in half-year profit to 31 December 2009 of $49.1 million. The gain came on the back of sale of investments, with underlying net profit falling 13% to $36 million.

By the final whistle, Perpetual shares were trading down 9c to $35.34.

Origin underlying profit climbs 28%
Origin Energy reported a 94% slump in net profit to $371 million, down from $6.66 billion from the six months to 31 December. Perhaps a more indicative figure however is the 28% jump in underlying profit to $355 million, as the previous half-year contained a number of significant items relating to the gain on dilution of Origin’s interest in Australia Pacific LNG, adding $6.705 billion to the bottom line.

At the close, Origin shares were down 30c at $16.50.

Flight Centre books profit jump
Flight Centre reported a $51.1 million half-year net profit after tax, nearly double the profit reported in the previous corresponding period. The company said it continues to target between $160 million and $180 million pre-tax profit, excluding any major abnormal items.

At the finish, Flight Centre was down 39c to $18.55.

Tatts Group posts $145m HY profit
Tatts Group reported a first half net profit of $145 million, up 0.2% on the previous corresponding period. The company said its wagering and lottery businesses continued to grow notwithstanding the impact of the Federal Government’s stimulus payment in 2008.

By the final whistle, Tatts Group shares were down 4c to $2.34.

Downer profit edges higher, guidance steady
Downer EDI reported a 1.9% climb in post-tax profit to $87 million for the six months to 31 December 2009. At the same time the diversified engineering and infrastructure services group reiterated its previously offered guidance of growth in NPAT of around 5%.

At the finish, Downer shares were down 36c to $7.95.

MAp proportionate earnings edge up
MAp reported a full year net loss attributable to security holders of $573 million versus a profit of $2.1 billion for the previous corresponding period. The group noted that during the year it successfully transitioned to a stand alone entity.

At the end, MAp Group securities were down 3c to $3.05.  

OM Holdings Limited (OMH) reported a post-tax profit of $26.9 million, down 77% from last years $115.6 million for the year ended 31 December. The miner attributed the result to lower prices and volumes for its manganese ore and alloys, despite these being partially offset by increased manganese sales. The company said 2010 looked better, with customer demand potentially outstripping the company’s ability to supply.

Toll Holding Limited (TOL) shares had slumped over 13% by mid-afternoon, after saying its profit fell 32% to $107 million for the six months to 31 December 2009 against the previous corresponding period. Looking ahead, Toll said trading conditions in the Australian businesses improved progressively through the second half and from early indications, this trend would continue in 2010.

”Overall, we would expect the Group’s trading results in the second half of the fiscal year to be broadly in line with those achieved in the first half of the year,” the company said.

Toll managing director Paul Little said it had been one of the toughest trading environments in many years.

“Whilst some of Toll’s businesses fell short of their half year targets, volumes now appear to be improving and the company is well placed to take advantage of anticipated more buoyant economic levels,” Mr Little said.

It has been a year of acquisitions for the Aussie logistics company, including Footwork Express in Japan, Summit in the US, LDS in the Middle East and Express in New Zealand.

“Each of these acquisitions positions us well for growth throughout the rest of the year and beyond,” Mr Little added.

”The strategy we have been following for several years now is continuing to come together well and while volumes are down in some sectors, it is certainly a good time for companies with strong balance sheets to be pursuing acquisitions,”

Revenue for the 6 months was $3.3 billion, a decrease of 6% over the previous corresponding period revenue of $3.5 billion.

Looking at some of Toll’s numerous divisions, Toll Global Express total revenue of $794 million was 18% higher than the previous corresponding period due to theinclusion of Footwork Express for the last two months.

Most other businesses recorded reduced volumes during the six months.

The Toll Global Forwarding business was impacted by significant customer volume declines and a strengthening Australian dollar. venue was 21% lower at $440 million, whilst EBIT was 64% lower at $7 million.

Global currency fluctuations had had a similar impact on Toll Global Logistics.

The board of directors declared an interim dividend of 11.5c per share fully franked, in line with the 2009 dividend.

At 1422 AEDT, Toll shares has slumped $1.16 to $7.49.

Aussie shares were up 0.5% following a positive lead from Wall Street where Fed chairman Ben Bernanke flagged low interest rates for the foreseeable future. Energy stocks fuelled the advance.

The All Ords was up 25 points to 4,690.9, while the ASX/200 added 23.4 to 4,671.9. Over 1.4 billion shares worth around $1.8 billion had changed hands.

The Banks and Financials sector was in a strong position, up 0.6%.

NAB led the banks higher after being heavily sold in recent sessions. Its shares were up 53c to $25.14. Westpac advanced 29c to $26.05, while ANZ, which releases its first quarter trading update tomorrow, and CBA were mostly flat.

Insurance Australia Group was up 5c to $4.00 on a strong first half profit result. The company also confirmed an upgrade to its annual insurance margin.

Suncorp fell 14c to $8.46 following a recommendation downgrade by Citi, which voiced concerns about the insurers near term outlook.

Perpetual gained $1.01 or nearly 3% to $36.44 after reporting a rise in first half profit. However, the fund manager was cautious on the immediate outlook.

Materials and Resources were up 0.4% despite a relatively subdued 0.3% increase to $41.02 for heavyweight BHP Billiton. Rio was up 65c to $71.05. Meanwhile, Fortescue Metals added 5c to $4.75.

On the downside, Illuka slumped 13c, or 3.5% to $3.62. The mineral sands explorere posted an annual net loss for 2009 voiced concern about demand in 2010

OZ Minerals gained 1.5c to $1.065 despite posting a net loss for calendar 2009.

Energy stocks were 1% higher with Woodside Petroleum climbing 61c to $43.93. Origin added 9c to $16.89 after posting a 94% drop in first half profit. However, the group offered a rosier earnings outlook.

Consumer Discretionary stocks were up 0.7% with number of high profile gainers. Among the heavyweights News Corp, Crown and Harvey Norman were all trading higher.

Pacific Branks picked up 4c, or 3.5% to $1.185 after being upgraded by Deutsche Bank.

Industrials added 0.5% despite an 18c, or 2.2% drop in Downer EDI. The company posted a small increase in net profit in the first half of fiscal 2010, and has reaffirmed its full year profit guidance.

Telecommunications rose 0.6% on a 0.7% increase in Telstra.

Consumer Staples slid 0.3%, led lower by a 34c decline in Wesfarmers. On the flip side, Coca-Cola Amatil gained 29c, or 2.6% to $11.31.

Meanwhile, Goodman Fielder lost 3.6% to $1.49 despite reporting a 25% increase in first half profit.

Around the region, the Nikkei 225 was up 29.5 to 10,228.4, while the NZSE50 rallied 17.7 to 3,148.5.

Spot gold was trading at US$1098.50 per ounce, while the Aussie was buying US$0.8943.

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The sun shines on IAG
Insurance Australia Group said its first half profit had surged to $329 million, from just $4 million in the previous corresponding period. The insurer said the catalyst for the result was less storm activity than normal, coupled with favourable credit spreads.

Half way through the day, IAG shares were trading up 4c to $3.99 each.

OZ Minerals posts $517m loss
OZ Minerals, which last year was forced to sell just about everything except its Prominent Hill mine as it struggled under huge debt, has posted a $517.3 million loss for the full year 2009, although still improved on 2008’s $2.5 billion loss. The miner said profits for the group were impacted by losses recorded on the sale of four mines to China Minmetals Non-Ferrous Metals.

By noon, OZ Minerals shares were trading down 0.5c to $1.045.  

Iluka still struggling
Iluka Resources reported a loss for the 2009 full year of $108.6 million, after posting a profit of $77.5 million in the previous corresponding period. The company said the result reflected restructuring and impairment charges as it grappled with the effects of the global financial crisis.

By midday, Iluka shares were down 11c to $3.64.

Ramsay profit leaps 46%
Ramsay Health Care reported a 46.2% rise in post-tax profit to $78.6 million for the six months to 31 December 2009. The private hospital operator also said that the future is looking rosy, with strong prospects for expansion in Europe and a broad-based increase in demand for health care supporting the company’s growth.

By lunch, Ramsay shares were trading up 3c to $12.58 each.
 
Perpetual profit climbs as GFC abates

Perpetual reported a 246% surge in half-year profit to 31 December 2009 of $49.1 million. The gain came on the back of sale of investments, with underlying net profit falling 13% to $36 million.

By lunchtime, Perpetual shares were trading up 89c to $36.32.

Origin underlying profit climbs 28%
Origin Energy reported a 94% slump in net profit to $371 million, down from $6.66 billion from the six months to 31 December. Perhaps a more indicative figure however is the 28% jump in underlying profit to $355 million, as the previous half-year contained a number of significant items relating to the gain on dilution of Origin’s interest in Australia Pacific LNG, adding $6.705 billion to the bottom line.

At midday, Origin shares were flat at $16.80.

Flight Centre books profit jump
Flight Centre reported a $51.1 million half-year net profit after tax, nearly double the profit reported in the previous corresponding period. The company said it continues to target between $160 million and $180 million pre-tax profit, excluding any major abnormal items.

Half way through the day, Flight Centre was down 61c to $18.33.

Tatts Group posts $145m HY profit
Tatts Group reported a first half net profit of $145 million, up 0.2% on the previous corresponding period. The company said its wagering and lottery businesses continued to grow notwithstanding the impact of the Federal Government’s stimulus payment in 2008.

At midday, Tatts Group shares were down 5c to $2.33.

Downer profit edges higher, guidance steady
Downer EDI reported a 1.9% climb in post-tax profit to $87 million for the six months to 31 December 2009. At the same time the diversified engineering and infrastructure services group reiterated its previously offered guidance of growth in NPAT of around 5%.

At noon, Downer shares were down 17c to $8.14.

MAp proportionate earnings edge up
MAp reported a full year net loss attributable to security holders of $573 million versus a profit of $2.1 billion for the previous corresponding period. The group noted that during the year it successfully transitioned to a stand alone entity.

Half way through the day, MAp Group securities were up 3c to $3.11.

OZ Minerals Limited (OZL), which last year was forced to sell just about everything except its Prominent Hill mine as it struggled under huge debt, has posted a $517.3 million loss for the full year 2009, although still improved on 2008’s $2.5 billion loss. The miner said profits for the group were impacted by losses recorded on the sale of four mines to China Minmetals Non-Ferrous Metals.

Not surprisingly, the company highlighted the positives for the year, saying that its only producing mine, Prominent Hill, produced an excellent result.

”Prominent Hill completed a very successful commissioning and ramp-up in 2009, reaching its name plate production capacity by Q4 2009 and exceeding production expectations for the year,” the company said.

”Maiden EBITDA of $381 million and NPAT of $203 million for Prominent Hill operations represent an excellent result.”

Overall, post-tax profit from continuing operations came in at $31.3 million.

Despite the result, the company said it was still sitting on over $1 billion in cash in the bank, with capital expenditure for Prominent Hill expected to be relatively low.

The board has declared no dividend.

At 1134 AEDT, OZ Minerals shares were trading up 1.5c to $1.065.

Iluka Resources Limited (ILU) reported a loss for the 2009 full year of $108.6 million, after posting a profit of $77.5 million in the previous corresponding period. The company said the result reflected restructuring and impairment charges as it grappled with the effects of the global financial crisis.

The company, which is involved in the exploration, project development, operation and marketing of mineral sands also lost $42.9 million from currency hedging.

The company said revenue fell 35.6% to $576 million, with a 54% reduction in sales of the company’s highest value product, zircon and a 15% reduction in rutile sales.

Iluka also noted a 22% per cent fall in synthetic rutile sales as it cut back production.

“The 2009 financial results were very poor,” managing director David Robb said, adding that the result was directly impacted by a fundamental lack of demand for its products.

Mr Robb said the result includes cash and non-cash costs of $158.2 million before tax, associated with a range of measures to match supply with short term demand, accelerate the reconfiguration of the portfolio and reduce costs.

The workforce was reduced by nearly 30% to 1,000 employees over the course of 2009.

”While not understating the company’s disappointment with the 2009 result, these measures, in combination with the delivery of the Jacinth-Ambrosia and Murray Basin projects, position Iluka to take advantage of demand recovery and emerging favourable industry demand/supply trends,” Mr Robb said.

”Iluka expects 2010 to be a stronger year in terms of sales volumes if demand is maintained in China and continues to recover elsewhere, albeit slowly in some key markets.”

Iluka’s first half sales in 2010 were likely to continue to use higher cost, lower margin material from the remaining Western Australian mining operations and inventory.

”On this basis, a loss is expected to be reported in the first half. However, operating cash flows are expected to improve through 2010,” the company said.

At 1115 AEDT, Iluka shares were down 12c to $3.63.

MAp Group (MAP) reported a full year net loss attributable to security holders of $573 million versus a profit of $2.1 billion for the previous corresponding period. The group noted that during the year it successfully transitioned to a stand alone entity.

As a result, MAp said base management and performance fees have been replaced by less volatile and significantly lower operating expenses.

The 2009 result included a one-off termination fee of $345 million paid to Macquarie Group as part of the transition to a standalone entity as well as other significant one-off items.

On a proportionate consolidated pro-forma EBITDA basis, MAp's 2009 result was a 2% rise to $767 million.

MAp delivered proportionate earnings per stapled security for 2009 of 21.6c.

This represented growth of almost 3% over 2008 and, were it not for the impact of the strengthening Australian dollar on the earnings of our European airports, the increase in earnings would have been greater.

2009 was also an active year of portfolio and capital management for MAp.

At the beginning of the year, Sydney Airport’s shareholders, of which MAp is the largest, decided to contribute $870 million in additional capital to the airport to eliminate all debt maturities until September 2011 and significantly deleverage the business.

In March, Copenhagen Airports successfully raised new working capital and capital expenditure facilities of DKK2.6 billion.

“We have also increased our ownership in our core airports where opportunities have arisen at attractive prices,” the group said.

The group declared a final distribution of 8c per stapled security, making a total distribution for 2009 of 21c.

The company said its intention is to maintain the distribution at 21c per stapled security for CY2010 subject to external shocks to the aviation industry or material changes to forecast assumptions.

At 1053 AEDT, MAp Group securities were up 7c to $3.15.

Downer EDI Limited (DOW) reported a 1.9% climb in post-tax profit to $87 million for the six months to 31 December 2009. At the same time the diversified engineering and infrastructure services group reiterated its previously offered guidance of growth in NPAT of around 5%.

CEO and managing director, Geoff Knox said he was encouraged by the ongoing demand for the company’s services.

”The robustness of our strateic plan combined with our excellent work-in-hand and growing pipeline of opportunities augers well for the Group’s continued success,” Mr Knox said.

Mr Knox said that the company’s growth would be in line with this strategic plan.

Looking at the numbers for the six months to 31 December, the company saw its revenue slip 3% to $2.8 billion, while work-in-hand stood at $16.4 billion across its works, engineering, mining and engineering divisions.

“The Group’s solid interim results were achieved during the early recovery stages of the global financial crisis, when business confidence remained low,” Mr Knox said.

”As market conditions stabilise, we are well-placed to benefit from opportunities arising from strengthening markets in the Asia Pacific region.”
 
The board declared a divided of 13.1, only symbolically higher than the previous corresponding period’s 13c per share dividend.

At 1051 AEDT, Downer shares were down 33c to $7.98.

Tatts Group Limited (TTS) reported a first half net profit of $145 million, up 0.2% on the previous corresponding period. The company said its wagering and lottery businesses continued to grow notwithstanding the impact of the Federal Government’s stimulus payment in 2008.

Chief executive Dick McIlwain noted that the comparative performance of the Group was always going to be clouded by the impact of the Federal Government stimulus payment in late 2008 and the cost of complying with a significant change to gaming machine operations in Victoria.

He said the group was encouraged by the performance of the venue and service support businesses of Maxgaming and Bytecraft.

“They continue to build their revenue base and that the profits from them will accelerate as revenues increase and expenses stabilise,” he said.

Mr McIlwain added that the longer term sales growth rates for both wagering and lotteries have reflected the increase in household disposable income.

Meanwhile, gaming machine revenues have struggled to record any substantial first half growth over the last three years.

Mr McIlwain said that Tatts Pokies’ expenses were inflated in the first half as a result of a requirement to bring forward the anticipated annual expenditure on games needed to comply with new maximum bet limits in Victoria.

“Full year FY2010 expenses are expected to be marginally lower than those in FY2009,” he added.

The outlook for the immediate future is promising according to Mr McIlwain.

He said that the Group would deliver better operating outcomes in the second half now that the most powerful elements of last year’s Federal Government’s stimulus packages and the requirement to bring forward expenditure in a number of the Group’s businesses have passed.

The company declared an interim dividend of 10c per share.

At 1041 AEDT, Tatts Group shares were down 4c to $2.34.

Flight Centre Limited (FLT) reported a $51.1 million half-year net profit after tax, nearly double the profit reported in the previous corresponding period. The company said it continues to target between $160 million and $180 million pre-tax profit, excluding any major abnormal items.

For the half year, the pre-tax profit was a record $73.6 million, up 115% compared to the previous corresponding period.

The company said its strong result defied a minimal economic recovery in key markets including the US and UK, lower cash yields and significantly lower average ticket prices.

“Yields, or ticket prices, remain well below traditional levels, following widespread supplier discounting during the second half of 2008/09,” the company added.

However, the company said it started the second half with significant momentum and was well placed for profit growth if current conditions continued.

“While challenges remain, our fundamentals are strong as we enter the next phase of our evolution,” FLT said.

“We have emerged from the difficulties we faced last year with a stronger sales force, stronger brand offerings catering for most market niches, a leaner cost base and a stronger balance sheet.”

The board has declared a 26c per share interim dividend.

At 1033 AEDT, Flight Centre was up 9c to $19.03.