US, A Profit Source for Australian Companies

Surprise, surprise! Some local companies have found an unlikely profit source from the United States as the latter faces a sluggish economy.

According to data from the S&P/ASX 200 index, those companies whose stocks have outperformed the two markets have one thing in common: they all have businesses in the US.

One of these performers is Breville Group with its stock soaring as high as 80 percent. Thanks to North America, the maker of juicers, sandwich toasters and small kitchen appliances is doing well. Just last week, Breville reported a 45 percent increase in its net profit.

James Hardie, Westfield Group and Brambles are also seeing their sales bolstered by sales in the US. Brambles is a pallet distributor, James Hardie is a building materials company, and Westfield Group is a shopping mall operator.

Australia is one of the few countries that enjoy a rosy economy. For the last seven years, Australia’s economy has remained strong. This year, the Reserve Bank forecasts a 3.5 percent growth in its gross domestic product.

Unemployment statistics are also steady at an average of 5.2 percent and housing prices are also steady.

Compared to Australia, the United States’ economy looks gloomy. In the last few years, the US has suffered from weak economic growth and high unemployment rates. Industry analysts, however, are saying that US may start to recover soon.

According to CommSec chief economist Craig James, the US remains the world’s largest economy and Australian companies can take advantage of it by tapping the US market.