Perpetual downgrades profit expectations
Perpetual is forecasting an almost 50 per cent reduction in its operating profit for the 2009 financial year to somewhere between $60 million and $70 million, down from $133.5 million in the previous twelve month period.
The grim profit outlook has been revealed by Perpetual chairman, Robert Savage in a letter to shareholders in which he also revealed that the company had reduced cash expenses by 13 per cent (over $35 million) as a result of targeted redundancies and natural attrition across the company during the 2008 financial year.
He said that the savings had also been achieved via the introduction of a cap on all executive and board remuneration for the foreseeable future and a significant reduction in bonus payments.
Looking to the future, Savage said that the Australian equities market had rallied by more than 20 per cent since its low point in early March, and that this was considerable more than in past bear market rallies and had coincided with better than expected economic data.
“Time will tell if these are the green shoots of recovery,” he said.
AUTHOR
Mike Taylor
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