4 Feb 2011

Jewellery company lowers forecast

3:58 pm on 4 February 2011

Horrendous weather in Australia has forced Michael Hill International to lower its full-year earnings forecast.

The jewellery company had expected to make a full-year profit of almost $50 million in the 2011 financial year.

However, it says floods in Queensland and Victoria and Cyclone Yasi in North Queensland are expected to adversely affect consumer spending in the coming months.

It now expects to make $45 million in 2011. That is still 25% higher than last year's $36 million.

Meanwhile, Michael Hill says it expects to make a half-year profit of almost $24 million for the six months to December, which is 7% higher than the same period last year.

Shares in Michael Hill remained unchanged at 90 cents on Friday morning.