AWB 0.00% $1.50 awb limited

net profit up 137pc to $64.3m final is 5c

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    Sydney - Wednesday - Nov 19: (RWE Australian Business News) -
    AWB Ltd (ASX:AWB) lifted net profit 136.8pc to $64.29m in the 12 months
    ended September 30 from $27.14m for the previous year.
    Net profit before significant items rose 64.7pc to $95.52m from
    Revenues rose 46.5pc to $6.84bn
    Basic earnings per share were 18.5c, up from 7.8c.
    Final dividend has been increased from 4c to 5c, fully franked,
    payable on January 5 for shareholders registered November 28.
    This brings total dividend for the year to 9c, up from 8c.
    The dividend reinvestment plan will continue to be offered with
    a 2.5pc discount and be fully underwritten.
    The board also clarified AWB's dividend policy is to pay out
    40pc to 65pc of net profit after significant items.
    Significant items after tax announced at the first-half results
    included a provision for a possible liability arising from litigation
    brought by the Standard Chartered Bank ($26.4m), costs associated with
    legacy issues ($4.6m) and a one-off benefit from the sale of Chicago
    Mercantile Exchange shares and a Kansas City Board of Trade membership
    totalling $4.6m.
    A further $4.8m of costs associated with legacy issues were
    taken during the second half.


    "This is a strong result particularly in light of commodity
    price volatility, variable weather conditions and regulatory change,"
    chairman Mr Peter Polson said.
    "The full-year result was pleasing in a challenging environment
    and structural reform of the company over the past 12 months ensures the
    company is well-positioned for future growth.
    "We have reformed the structure of the AWB group with a new
    commercial governance structure, new board and improved risk framework.
    "We have also been successfully managing legacy issues with
    three US class actions being dismissed, although one of those dismissals
    is under appeal," he said.
    Managing director Mr Gordon Davis said all three core divisions
    of the group increased profits with Landmark Rural Services achieving a
    record result with a clearer strategy and the business focused on
    investing in growth.
    "The Australian Commodities division performed strongly and
    there was a mixed result in the International Commodities business," he
    Mr Davis said, "we are pleased with our performance under the
    new wheat marketing arrangements as our wheat pools have been
    well-supported by Australian farmers and we have made significant
    inroads into executing our marketing strategy to get the best possible
    returns for pool participants.
    "Our overall strategy remains to increase shareholder returns by
    continuing to rebuild and grow the business domestically and
    A new corporate strategy is being developed following wheat
    marketing deregulation and AWB governance reform.
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