Aristocrat outlook improves after loss

Tuesday, May 4, 2004 | 11:11 a.m.

BLOOMBERG NEWS

SYDNEY, Australia -- Aristocrat Leisure Ltd., the world's second-biggest slot machine maker, today forecast earnings would improve after reporting a first-quarter profit of A$8.5 million ($6.1 million) after a year earlier loss.

The profit compares with a loss of A$36.5 million in the same period a year ago, Chief Executive Paul Oneile said at the annual meeting in Sydney. Earnings would improve from the first quarter, traditionally the company's weakest, he said.

Aristocrat declined to give a more specific forecast because it is waiting for indications about the success of a game to be introduced in Japan, the timing of some product approvals, and the outcome of litigation brought by former Chief Executive Des Randall, Oneile said.

The shares today rose 6 cents or 1.5 percent, to A$3.98 at the 4 p.m. market close in Sydney. Its 131 percent increase this year makes it the best performing stock in the S&P/ASX 200 Index.

The shares fell 63 percent last year after the company lowered its earnings forecast three times, wrote down of the value of businesses and contracts and reported a loss for the year of A$106 million. This year it is expected to earn A$65.6 million, according to the median forecast of 11 analysts surveyed by Thomson Financial.