I hate it when I read about money/profits and the HPV vaccine in the Financial Sections of the newslpapers.
“Our Australian businesses and the royalty income from global Human Papillomavirus vaccine sales attract Australian tax. It is CSL’s present intention that franking credits generated from these activities will be passed on to shareholders as and when they are generated.”
International Business Times
October 15, 2009
CSL shares rose yesterday despite the company revealing itself to be a victim of the strong Australian dollar with earnings growth slowing because of the rise in the currency.
A few hours after the currency hit a 14 month high of well over 91 US cents, CSL said that the growing success of its business overseas could affect its annual profit, and it would not frank its interim dividend as a result.
CSL said despite the higher earnings offshore, profit could be affected by the strengthening Australian dollar.
At the company’s annual general meeting yesterday CSL said trading had been in line with expectations at the end of the first quarter of the current financial year.
The shares jumped 76 cents in early trading to $32.47, before easing to end at $32, a gain of 29c.
Investors seemed to focus again on the warnings the current strong exchange rate could hurt profits over the remainder of 2010, especially with 80% of sales now made offshore
“For the 2009-10 fiscal year, we expect net profit after tax to be between $1.16 billion and $1.26 billion at 2008-09 exchange rates,” chairwoman Elizabeth Alexander told the meeting.