DuluxGroup forecasts profit growth
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SYDNEY, Dec 18 AAP
December 18 2012, 3:05PM
Paint maker DuluxGroup says sales have improved so far in fiscal 2013 and a rise in full year net profit is on the way.
DuluxGroup chief executive Patrick Houlihan said there had been positive sales growth in all four business segments - Paints Australia, Paints New Zealand, Selleys Yates and Offshore - through the two months since the end of September.
The company expects net profit after tax for the year to the end of March, excluding the impacts of its takeover of home renovation company Alesco, to be higher than the prior year's like-for-like net profit of $79.6 million, Mr Houlihan said.
"Although we anticipate the short term outlook in our core markets to remain subdued, the business is well positioned," Mr Houlihan told the DuluxGroup annual general meeting in Melbourne on Wednesday.
DuluxGroup will begin compulsory acquisition of the remaining shares in Alesco after reaching 90 per cent ownership of the building products group on Monday.
Mr Houlihan said it was too early to provide any definitive earnings guidance for Alesco, and flagged an update to the market before the end of March.
Chairman Peter Kirby told shareholders the focus for 2013 would be on integrating the Alesco businesses and maximising the opportunities as soon as possible.
But the company remains opened to other opportunities, Mr Kirby said.
While retail and consumer markets served by DuluxGroup in 2012 were very quiet, Mr Kirby said lower interest rates and a more confident consumer "should provide a tail wind for the year ahead".