Perth, Nov. 15 - Wesfarmers Ltd, set to complete its A$20 billion ($18 billion) takeover of retailer Coles Group Ltd next week, said on Thursday the outlook for retail trading remained favourable.
Chief Executive Richard Goyder told a shareholders meeting in Perth that trading at its Bunnings home improvement store chain was strong in the first four months of the business year, with cash store-on-store sales growth of more than 11 percent.
"At this point, the retail trading outlook remains favourable in the lead up to the Christmas trading period, although volatility concerns remain, particularly in the lead up to the federal election and following last week's interest rate increase," Goyder said.
Australia goes to the polls on Nov. 24.
Goyder said the coal division met the group's own forecasts for the first quarter, but said rail and port congestion had continued to hurt export sales from its Curragh and Bengalla mines.
The group's insurance arm faced several weather catastrophes in New Zealand and Australia in the first quarter and large commercial claims in Australia.
Earnings from its chemicals and fertilisers arm, CSBP, rose on the back of strong demand from miners and despite bad weather curbing fertiliser demand.
Goyder said he was pleased with the first quarter in Wesfarmers' energy division, but warned that performance in the rest of the year depends on LPG production levels and global energy prices.
Wesfarmers shares eased 0.7 percent to A$39.60 on Thursday, in a broader market down just over 1 percent. ($1=A$1.11)