Wesfarmers Limited
From IntFX
See also: WES for realtime information.
Wesfarmers Limited is a diversified firm focusing on Australian and New Zealand markets of home improvement products and building supplies, coal mining, gas processing and distribution, industrial and safety product distribution, chemicals and fertilisers manufacture and insurance.
The Company has structured its operations in seven business segments including:
- Home improvement
- Coal, insurance
- Industrial & safety
- Chemicals & fertilizers
- Energy
- Other businesses
The Home Improvement division operates under the ‘Bunnings Warehouse’, ‘Bunnings’, ‘Benchmark Building Supplies’ and ‘HouseWorks’ brands. Bunnings retails home and garden improvement products and supplies building materials in Australia and New Zealand. The business caters to do-it-yourself customers as well as builders and contractors through a network of large warehouse stores, smaller format stores, trade distribution centres and frame & truss manufacturing sites.
Coal business comprise the Curragh mine in Queensland, the Premier mine at Collie and a 40% interest in the Bengalla mine in the Hunter Valley.
Insurance business operates through three general insurance companies (Wesfarmers Federation Insurance, Lumley General Insurance Australia and Lumley General Insurance New Zealand), two general insurance brokers (OAMPS and Crombie Lockwood), two premium funding businesses (Lumley Finance in Australia and NewZealand), superannuation and financial planning services (OAMPS) and an insurance software developer (Koukia).
Industrial and Safety operate though nine businesses and supplies engineering products and industrial consumables, safety, packaging, materials handling and lifting products and services to industry and government across Australia and New Zealand.
Chemicals & Fertilisers business supplies chemicals, fertilisers and other services to the mining, industrial and agricultural sectors.
Energy segment includes four gas businesses, a power generation business and support services.
The Company is headquartered in Perth, Australia and is listed on Australian Stock Exchange since 1984.
[edit] History
Wesfarmers’ originated in 1914 as a Western Australian farmer's co-operative focused at the provisioning of services and merchandise to the rural sector.
[edit] Strategy
Home Improvement: Provide wide range of products at lowest prices; Develop and improve store network through new store openings, retrofits of existing outlets and remerchandising initiatives; Efficient use of working capital and lower cost through process and system modifications.
Coal: Deliver shareholder value through initiative, innovation and growth. Industrial and Safety: Improve business efficiencies and offer new or improved service and product range; Expand through organic as well as acquisition led growth.
Chemicals & Fertilisers: Use core competencies to develop new products and enter new markets; Provide wide range of quality fertilisers at competitive prices.
Energy: Expanding geographical presence; Develop investments and capabilities in new segments.
[edit] Financial performance
Wesfarmers’ sales revenues increased 9.6% to A$9,666.4 million in 2007 from A$8,818.3 million in 2006. However, during the same period the Company’s EBITDA declined 2.0% to A$1,565.2 million and net profit declined 9.6% to A$786.3 million. Wesfarmers witnessed a decline in its EBITDA margin to 16.2% from 18.1% in 2006 and a decline in net profit margin to 8.1% from 9.9% in 2006.
