Chief executive Michael Luscombe said at the company's annual general meeting that the guidance will be maintained, but also said economic volatility will keep the company sharp.
"While we have started the 2010 financial year optimistically, there are still a number of uncertainties facing the economy, such as rising interest rates," he said, also confirming guidance for sales to be in the upper single digits and for EBIT to grow faster than sales.
Chairman James Strong also said that due to an expected 11% growth in net profit for the year, the company will seek out new investments.
"We will continually monitor options, including new investments," he said, and noted that "Woolworth's is moderately geared, and our lack of reliance on external funding has certainly been a distinct advantage".
Mining entrepreneur Ken Talbot has moved away from mining investment in a return to mining construction, with his company Talbot Group selling its 16.3% stake in coal developer Riversdale Mining to a Brazilian steel manufacturer.
Talbot will now use the funds to put towards the development of a coal project in Mozambique, along with Nippon Steel. Resources director Denis Wood has said in a statement the sale was due to a lack of management and operational control over Riversdale.
Capital expenditure gains 3.9%
Total new capital expenditure fell 3.9% during the September quarter, according to the latest figures from the Australian Bureau of Statistics.
The estimate for buildings and structures fell by a seasonally adjusted 4.8%, while the equipment, plant and machinery seasonally adjusted volume estimate dropped 2.9%. In expected expenditure, estimate four for 2009-10 is $105 billion, representing a 7.7% decline from 2008-09.
Meanwhile, new figures reveal the total consolidated assets of managed funds institutions was $1.3 trillion, representing an increase of 8% from the revised June quarter figure of $1.2 trillion.
Consolidated assets of superannuation funds increased by 10% to $73 billion. Life insurance offices increased by 9% to $15.4 billion, public unit trusts jumped by 3% to $8.5 billion and common funds jumped by 3% to $0.2 billion.
As of 30 September, investment managers had $1.1 trillion in funds under management, an increase of 8% or $84.8 billion from the June quarter.
The Australian sharemarket has opened flat today despite good results in the US, where optimistic data showing a stabilisation in the labour and housing markets have boosted investor confidence.
The benchmark S&P/ASX200 index was down 7.9 points or 0.17% to 4714.3 at 12.00 AEST, while the Australian dollar has opened higher to US93c after comments from the Reserve Bank of Australia yesterday lifted confidence about the domestic economy.
NAB shares fell 0.5% to $28.29, while ANZ also lost 0.3% to $22.14. Westpac lost 1.4% to $24.04, as AMP fell 0.8% to $6.21.
Industrial company CSR has completed the shortfall bookbuild for its $375 million capital raising, with the retail component of its entitlement offer leaving over 47.5 million shares unsold. Shares sold for $1.75, 2.5% lower than the last traded share price of $1.795.
"Retail shareholders have shown strong support for the entitlement offer and we're pleased to have implemented a structure that enabled all renouncing and ineligible institutional and retail shareholders to receive equal proceeds for their renounced entitlements," managing director Jerry Maycock said in a statement.
Tower Australia profit falls, US stocks rise
Life insurer Tower Australia has announced its full year profit fell by 32% to $46.4 million for the year ending 30 September due to "volatile markets". But chief executive Jim Minto said in a statement that underlying profit gained 10% to $74.5 million due to winning some contracts, and said it indicates more confidence on the market.
"Continued growth in both the life market and the Tower Australia business reflects the confidence of consumers in life insurance to help them meet their personal risks," he said.
Meanwhile, regional lender Bank of Queensland has announced director Peter Fox has resigned his position in order to focus on his work with transport company Linfox Group. He has held his position since 2001 and is a large shareholder.
"The Linfox Group and I have every confidence in the management team at Bank of Queensland and we will continue to be supporters of the BOQ brand," Fox said in a statement.
In the US, Wall Street recorded good results after the Government released new data indicating improvement in the domestic economy. The Commerce Department said consumer spending increased 0.7% last month after a decline of 0.6% while new claims for jobless benefits also fell.
The Dow Jones industrial average gained 30.69 points, or 0.29%, to 10,464.40.
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