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Metcash down but Mitre 10 expands
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Metcash has adjusted earnings guidance after assessing its June capital raising and recent initiatives including taking full ownership of Mitre 10 hardware. The company expected an earnings-per-share (EPS) dilution of between one and three percent in fiscal 2013 compared with underlying EPS in the previous year. Sources: Otago Daily Times, Gympie News, Herald Sun
In a trading update, Metcash said current conditions continued to be challenging due to the deflation caused by the high Australian dollar and low consumer confidence resulting in more promotional sales.
The company said it had spent or firmly committed $285 million of the $325 million it raised through its June share placement.
There was also a new joint-venture agreement by Metcash's Mitre 10 hardware chain in Victoria with agreements "close to completion" in NSW, Tasmania and Western Australia.
In July, Metcash purchased the remaining 49.9 per cent of Mitre 10 it did not own and took over Automotive Brands Group.
In Gympie, Queensland a new independently owned Mitre 10 store will open its doors to the public this week.
The Sunshine Mitre 10 group is one of the largest independently owned Mitre 10 groups in Australia and employs more than 300 local people in all of its nine locations – Kunda Park, Noosa, Nambour, Cooroy, Kingaroy, Hervey Bay, Caloundra, Dalby and Gympie.
Sunshine Mitre 10 was formed in 2008 as a result of a merger between the Melco and Lanhams family-owned timber and hardware businesses.
In New Zealand a new Mitre 10 Mega store is expected to create about 50 new jobs and give the construction trade in Queenstown a boost.
The proposed building has just received planning approval and is a single, ground-floor building of 6249 square metres on a 1.82ha site.
H&J Smith co-director Jason Smith said the company was "delighted" to receive approval on their third attempt and third proposed location to open a Mega store in Queenstown since 2003.