AMP boosts results forecast
AMP,in a rare bout of good news, has revised its profit expectations upward for the calendar year ending 2003 following an improved performance across its business units includingAMP Financial Services.
The group had forecast a net profit after tax for the year ending December 31 2003 of between $402 million and $535 million in an October 2003 explanatory memorandum relating to its demerger to split its UK and Australasian operations.
However, AMP chief executive Andrew Mohl says it is now likely this figure will be in the range of $600 million to $620 million.
“The better than expected profit result reflects improved business unit performance, particularly in the final months of the year, and a number of positive one-off items that emerged in the end of year review process,” Mohl says.
Mohl says this performance saw business units such as AMP Financial Services andAMP Capital Investorsexceed the top end of the respective forecasts in the demerger explanatory memorandum.
According to the group,AMP Lifeled an organisation-wide balance sheet enhancement and outstripped the firm’s anticipated original forecast.
AMP Life was in a position to transfer $725 million to AMP Limited at the end of December 2003 due to higher operating profits, capital management initiatives, investment performance and improved market conditions.
As a result of the stronger figures AMP will accelerate its debt repayment program, and now expects to pay off $1.2 billion of its $3.2 billion external debt as opposed to the $600 million that it had previously flagged.
The results are due for finalisation and release on March 4.
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