8 Sep 2009

Large firms coming through recession 'reasonably well'

7:31 am on 8 September 2009

Results from the earnings season show corporates are faring reasonably well given tougher trading conditions, analysts say.

Firms including Fletcher Building, Sky City Entertainment, Auckland International Airport, Port of Tauranga, and Delegats performed well, while Freightways, Contact Energy and PGG Wrightson had disappointing results.

While retailers have yet to report, Mark Lister of Craigs Investment Partners says from what he's seen so far, firms are been underpromising and over-delivering.

Earnings were down by as much as 30% on previous years, he says, but the results were still not as bad as expected.

Mr Lister says companies have been cutting costs, so in some cases earnings have risen despite falling or stagnant revenue.

Results from companies with operations on both sides of the Tasman, like Woolworths and ANZ bank, have shown their Australian operations are performing better.