Kerry Stokes' Seven Group Holdings has slipped to a half year loss of $41.8 million due to $145 million of writedowns almost entirely related to the value of its stake in Seven West Media.
Seven Group holds a 23.4 per cent stake in Seven West, and operates the WesTrac heavy machinery business in Australia and China and owns Coates Hire.
Its bottom line was weighed down by an impairment of $139.6 million against its stake in Seven West, which last week reported a 91 per cent drop in half year profit, and suffered a 24 per cent hit to its share price in the period.
Seven Group's underlying pre-tax profit rose eight per cent in the six months to December 31, due to earnings growth for WesTrac and Coates Hire.
Seven Group has upgraded its guidance for full year earnings before interest and tax, forecasting an increase of between five and 10 per cent on 2015/16, as WesTrac benefits from increased demand from mining companies.
"The mining production cycle is supporting parts and component demand growth as customers continue to focus on costs and push productivity targets," chief executive Ryan Stokes said.
"We are particularly pleased with the performance of our Coates Hire and China businesses which have benefited from increased infrastructure demand."
Seven Group shares were up 15 cents at $9.72 at 1505 AEDT.
MEDIA WOES OUTWEIGH MINING FOR SEVEN GROUP
* Half year net loss of $41.8m vs $7.1m profit
* Revenue down 4.8pct to $1.3b
* Interim dividend steady at 20 cents, fully franked
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