Australian weather expected to hurt Michael Hill

Friday 4th February 2011

Michael Hill International has cut its expected full year earnings before interest and tax, after extreme weather events in Australia.

Chairman Sir Michael Hill today said the jewellery company was forecasting a full year ebit of $45 million.

That compared to $36.2 million last year but was lower than the original budget for the year of $49.9 million that was included in an independent adviser's report last month.

"The recent floods in Queensland and Victoria, and the cyclone in North Queensland are expected to adversely impact consumer behaviour in the coming months and these events were of course unknown at the date of preparing the budgets referred to in the independent advisor's report, Sir Michael said.

Durante Holdings, a company associated with the family of Sir Michael, is seeking to lift its shareholding to 50.2%, from the 47.6% it owned when it announced the move in December.

Michael Hill also today said it expected net profit for the six months to December 31 of $23.9 million, up from $22.3 million a year earlier.

NZPA

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