Business News

5 things you need to know today

Published on: Tuesday, February 14, 2017

• Treasury Wine Estates (TWE) has announced its interim 2017 financial result, with its first-half net profit (NPAT) coming in at more than double the previous corresponding period, at $136.2 million. Contributing to the solid result was the purchase of Diageo assets in the US and UK last year. Earnings Per Share (EPS) also more than doubled the previous corresponding period, at 18.5 cents per share, and Earnings before interest, tax and other deductibles (EBITS) rose 58.8% to $226.8 million on a reported currency basis. The company also announced an interim dividend of 13 cents per share.
• Cochlear announced a first-half net profit of $111.4 million, up 19%. Sales revenue for the hearing implant maker was up 4% in Australian dollars, and 8% in constant currency, to $604.4 million. Full-year net profit guidance was maintained at $210-225 million and the company also announced an interim fully-franked dividend of $1.30 per share, up 18% on a year ago. “The positive momentum we have experienced over the past few years has continued into FY17 with strong and consistent growth in units delivered across all regions,” said Cochlear’s Chief Executive Officer and President, Chris Smith.
• JB Hi-Fi is preparing for the arrival of Amazon by building a customer data vault to help mirror the company’s in-store experience online. According to the Australian Financial Review, JB Hi-Fi chief executive, Richard Murray, said low operating costs and great products and prices would help it compete with new arrivals like Amazon. He revealed plans to increase engagement and customer service with shoppers through a database that stored customer purchases, receipts and warranties. Testing of the database commenced before Christmas 2016. Yesterday, JB Hi-Fi announced a 16% increase in its first-half net profit to $110.4 million. Watch Peter Switzer's interview with Richard Murray here.
• Wall Street has continued to rally on the back of a promised tax cut announcement by US President Donald Trump in the coming weeks. Positive earnings results also fuelled the rally. At the close, the Dow Jones index was up 143 points or 0.7%, the S&P 500 index was up 0.5% while the Nasdaq up by nearly 30 points or 0.5%. 
• At 0700 AEDT on Tuesday, the share price futures index was up 20 points at 5,733.