Seven Group expects underlying growth
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SYDNEY, Nov 15 AAP
November 15 2012, 11:34AM
Seven Group Holdings managing director Peter Gammell says the media and industrial services group is "doing very well" after forecasting a rise in first-half underlying profit for 2012/13.
Seven Group expects underlying earnings in the range of $200 million to $220 million in the six months to December 31, up from $169.3 million in the first half of 2011/12.
Mr Gammell on Thursday also announced the company was considering its 45 per cent holding in the profitable Coates Hire equipment business after receiving a number of inquiries from potential buyers.
Seven Group also owns earthmoving equipment company WesTrac and holds major stakes Seven West Media and Prime Media Group.
Despite the increased earnings forecast, Mr Gammell warned that the outlook for the company's construction and mining equipment operations in China was uncertain due to declining trading conditions.
The Australian mining equipment business would also suffer in the second half of 2012/13 due to cancelled or deferred mining projects, the company said.
Mr Gammell said Seven Group's 33 per cent stake in Seven West Media had an uncertain outlook due to the subdued advertising market.
"Looking forward, statutory results at 31 December may be impacted by any mark-to-market movement on our investment in Seven West Media," he said.