BURNS, PHILP & COMPANY LIMITED 2002-04-24 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
The Directors present the trading results of Burns Philp for the
third quarter ending 31 March 2002 and the year to date.
AUD MILLION 3 MONTHS ENDED 31 9 MONTHS ENDED 31
MARCH MARCH
2002 2001 2002 2001
Sales 305.0 329.3 1,089.5 1,072.6
Trading EBIT before
unusual items 44.1 33.1 158.1 140.7
Unusual items (25.1) - (25.1) -
Trading EBIT after
unusual items 19.0 33.1 133.0 140.7
Interest (15.3) (20.0) (51.3) (61.6)
Tax (5.3) (2.5) (14.1) (9.4)
Outside Equity Interests (0.9) (0.5) (2.3) (1.5)
Net Profit before abnormals
attributable to
Shareholders (2.5) 10.1 65.3 68.2
Net Profit (2.5) 10.1 65.3 68.2
The Group's trading results, earnings before interest and tax (EBIT
before unusual items), increased by 33% quarter-on-quarter and 12%
year-to-date and are in line with expectations.
The Group's operations in the United States, Europe and Asia Pacific
all traded well. Brazil, Australia, and Turkey were adversely
affected by pricing competition. Tones continued to trade above
budget and last year.
In March the third and final initiative of the planned consolidation
program in the United States, being the closure of the yeast plant in
Oakland, California, was initiated. Incrementally this will increase
the cash earnings of the US yeast group by between $5 and $6 million
next financial year. The cash cost of $3 million for the closure
(severance and land remediation), together with a non-cash charge of
$22 million (write down of book value on a going concern basis), have
been charged to this quarter's earnings as an "unusual item".
The Group recently announced its intention to sell two non-core
assets as parts of its development plans. The Terminals business in
New Zealand and Australia and the industrial vinegar business in
North America will be sold, with completion anticipated for the
second or third quarter of this calendar year. The gains on book
value will be recorded in the accounts at that point in time.
BPC
burns, philp & company limited