AMP says net loss to worsen to A$900 million

By NZPA

Tuesday 21st January 2003

Financial services company AMP predicted today a worse than expected annual net loss of A$900 million ($975.6 million) for 2002.

AMP shares, which hit a record low yesterday of $12.10, were in a trading halt prior to this morning's announcement.

The company said late last year it would post a loss of up to A$600 million for 2002, compared with its net profit of A$690 million in 2001.

That followed A$1.2 billion worth of asset writedowns and A$320 million in restructuring costs last year, both of which will hit its 2002 earnings.

Lower than expected margins in AMP's British financial services unit meant the company anticipated an annual profit of A$500 million, before write-downs, asset sales and restructuring costs.

"After those items, AMP currently expects to report a total net loss of around A$900 million for the 2002 year," the company said in a statement.

"As AMP's year-end processes are still in their early stages, all estimates remain subject to final actuarial and audit review and sign-off."

AMP will report its full 2002 financial results on February 26.

Operating margins for AMP's United Kingdom business were likely to be around £36 million ($106.38 million), down from an earlier estimate of £112 million, as a result of poor international markets.

"The UK results underline the impact of depressed equity markets and the continued difficult operating environment we face there," AMP chief executive Andrew Mohl said.

"AMP has more than A$7 billion ($7.58 billion) in of our capital invested in the UK, and we are committed to extracting value from our mature business and selectively growing our contemporary business in the best interests of shareholders."

AMP shares peaked in New Zealand at more than $27 in June 2001.

Comments from our readers

No comments yet