By Keri Algar
Sydney, NSW: Bunnings parent company, Wesfarmers, has been dragged down by its resources division, posting a 2.6 per cent drop in earnings before interest and tax (EBIT) for the full year ended 30 June 2010.
Bunnings on the other hand, booked a bumper result with earnings up 10.5 per cent, supported by robust growth in retail and trade sales, according to a statement released on the Australian Securities Exchange.
Despite the resources profit plunge, Wesfarmers managing director Richard Goyder, said he was pleased with the overall results, which had been boosted by the retail and trade operations.
“Bunnings again delivered a strong result, with growth across all regions and product categories, and further improvement in both retail and trade offers,” said Goyder.
“Significant work was completed in the Bunnings’ network with 22 stores new trading locations opened during the year and good progress made on continuing to strengthen the store pipeline across Australian and New Zealand.”
Wesfarmers was significantly impacted by its resource category, in which earnings fell by 81 per cent to $165m as a result of sharp declines in export coal prices during the first three quarters.