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Goodman upgrades earnings guidance

Liza Kappelle
Goodman Group is confident of a good second half and has upgraded its full-year earnings forecast

Goodman Group has upgraded its earnings guidance for the full year after posting a strong first half operating profit.

The warehouse and business has booked a statutory net profit for the half year of $810.6 million, down from $929.2 million at the same time last year after non-recurring costs including $87.7 million for its long term incentive plan.

But its operating profit for the six months to December 31 jumped 14 per cent and Goodman reckons all the signs are pointing to a positive second half.

"In a slowing global economic environment, demand for industrial assets from customers and investors remains robust, particularly in the limited supply urban infill markets," it says.

Goodman expects a good second half so it has increased its forecast operating earnings per share to 57.3 cents for the full year, up 11 per cent on the prior full financial year.

Goodman says its closely monitoring the impact of the coronavirus on its operations in China and and there is no evidence to suggest any material impact on its business for now.