FED:CSL to create hundreds of jobs in Australia

AAP General News (Australia)
08-17-2011
FED:CSL to create hundreds of jobs in Australia

SYDNEY, Aug 17 AAP - Blood products maker CSL expects to create hundreds of jobs in
Australia by building a new manufacturing plant in Victoria.

The company on Wednesday unveiled plans to construct the plant at its Broadmeadows
site as part of a $250 million capital expenditure plan to upgrade its facilities over
four years.

"We think overall there will be many hundreds of jobs created through the construction
and long term operation of the plant," chief executive Brian McNamee told reporters.

"This is a 10- to 20-year decision not a one-year decision.

"(The plant) will be designed for further modular expansion."

Construction on the new plant is expected to be completed by 2016.

It will manufacture Privigen, CSL's intravenous immunoglobulin treatment for people
whose immune system does not function properly.

CSL, which currently makes Privigen at its main manufacturing plant in the Swiss capital
of Bern, will export the product from Broadmeadows to the United States, Europe and Asia.

The company earlier reported a 10.7 per cent drop in net profit to $940.6 million for
the 12 months to June 30.

CSL, which generates 90 per cent of its profit overseas, was hit by $116 million worth
of unfavourable foreign exchange movements.

On a constant currency basis, operational net profit grew 14 per cent to $1.06 billion.

Shares in CSL declined 45 cents, or 1.5 per cent, to $29.41 by 1046 AEST. The stock
reached an almost four-year low last week as equity markets around the world plunged.

Dr McNamee said CSL expected growth in reported profit of 10 per cent for the year
ahead, based on fiscal 2011 exchange rates.

"However the US dollar is currently trading at historic lows against the Swiss Franc
and should current rates prevail throughout the fiscal year we anticipate a foreign exchange
headwind to fiscal 2012 reported profit," he said.

CSL makes all its immunoglobulin products in Switzerland, where the rising Swiss franc
has pushed up costs for CSL's exports.

Revenue declined 6.6 per cent to $4.32 billion.

Dr McNamee said the weakening US dollar and euro against the Swiss franc was causing
"significant problems" for CSL.

"I don't know what I did to the world currency markets," Dr McNamee joked.

"We have been caught up in a perfect storm of currencies.

"But the business is strong."

Meanwhile, CSL has completed its on-market share buyback and foreshadowed further
capital management initiatives, with $479 million cash on hand.

CSL will pay a final dividend of 45 cents per share, 4.4 per cent franked.

AAP bt/dlm/dep

KEYWORD: CSL

� 2011 AAP Information Services Pty Limited (AAP) or its Licensors.