Australia: Fosters in line with its financial plans for the full fiscal year 2006
Australia-based, Foster's Group Ltd., is on target to attain its full-year earnings guidance in fiscal year 2006, according to the chief executive Trevor O'Hoy. O'Hoy made a statement at the group's annual meeting in which he said that the first quarter performance is in line with the company’s plans. The CEO said as well that Fosters expects cost savings of 40-50 mln A$ in 2006, which will rise to 145 mln in 2008, from its 3.2 bln A$ takeover of Australian wine company Southcorp Ltd this year. "For the first quarter our businesses are absolutely in line with plan, Chief Executive Trevor O'Hoy told reporters after the annual meeting. "The three core businesses are on track."
Foster's reported a 17 % rise in annual net profit to 936.1 mln A$ in the year to June, including a 454.3 mln A$ one-off gain, coming largely from the sale of the Lensworth property group.
For the fiscal 2005, Foster's reported basic earning s per share (EPS) of 0.468 A$, while its normalised EPS was 0.283 A$. In August, Foster's , said it was targeting ongoing earnings per share growth of 10 % in the current June fiscal year.
Foster's paid A$3.2 billion ($2.4 billion) for Australian wine company Southcorp in fiscal 2005, becoming the world's second-largest listed wine company after Constellation Brands Inc. Constellation has made a C$1.1 billion ($924 million) bid for Canada's largest winemaker Vincor International VN.TO., as drinks companies continue to increase their global scale. "It vindicates what we did with Southcorp," O'Hoy said. "Southcorp was clearly on the list of every global player. Vincor wasn't."
Foster's shares were steady at A$5.55 in afternoon trade, on Friday, easing 4.2 percent to date this calendar year compared to a gain of about 7 % in the wider market. ($1=A$1.33)
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