NZ stocks: Airport tipped to hit high

By PAUL PANCKHURST

The annual result of Auckland International Airport goes under the spotlight today with analysts expecting another high point in a strong reporting season.

Forecasts from three sharebroking firms of the company's bottom-line profit ranged from $69.6 million to $70.8 million - all big increases on last year's $59.1 million.

JBWere broker Humphrey Sherratt said the company's performance had been well signalled. The interest would lie in new information on topics ranging from trading since balance date to the need to find a replacement for exiting managing director John Goulter and the structure of the pending capital repayment to shareholders.

There is also the issue of last month's Commerce Commission recommendation that regulatory controls be imposed on the company's airport monopoly.

Another big company to report this week will be The Warehouse.



The consensus is that it has been a strong reporting season. First NZ Securities talks of "more positive surprises than we can remember for a reporting season, making it one of the best in recent history".

First NZ said most companies had reported higher underlying earnings than in the previous period, with the growth often running into double figures.

It cites an improved economy, company cost-cutting and, in some cases, low oil prices as factors in the strong performances.

However, it warns that although the outlook for earnings is fairly solid the "sweet spot" has passed and companies are now forecasting more moderate growth.

As a footnote to the results so far, First NZ notes six companies - Telecom, Air New Zealand, Fletcher Forests, Tranz Rail, Sky City Entertainment and Natural Gas Corporation - managed a combined total of $1.8 billion in asset writedowns.

"Putting a positive spin on it, this is less than the $3 billion written off this time last year."

Sherratt said the long weekend closing Wall St today marked the end of the summer break in the Northern Hemisphere.

"Traditionally, this is quite a quiet time."