CSL at record high on profit forecast

Shares in CSL (ASX:CSL) surged 7.5% to over $50 – an effective record – after the company lifted its profit growth projections for FY13.

CSL said it expects US dollar net profit after tax to grow by around 20% for the year at constant currency.

This is an improvement on the 12% growth the company had projected while reporting a net profit of US$1.02 billion ($974.2 million) for FY12.

The $50 plus share price is a record except for a technicality, whereby CSL shares did spike past the $100 mark for a brief period in 2007, but this compelled directors to propose and subsequently enact a three-for-one stock split. Disregarding the split, today's share price would be over $150 in comparison.

CSL managing director Brian McNamee said the improved outlook can largely be attributed to the performance of plasma protein subsidiary CSL Behring.

“A number of factors have contributed including a higher level of sales, a better sales mix, improved efficiencies across the supply chain [and] higher than anticipated royalty income from sales of Gardasil.”

Gardasil is a preventative vaccine for HPV, marketed by Merck Serono under a licensing deal with CSL.

CSL in October announced an up to $900 million on-market share buyback – its sixth since 2005 – while in the final stages of concluding another $900 million buyback. McNamee said this means earnings per share growth will exceed profit growth expectations.

As of around 3:30pm on Tuesday, CSL shares were trading at $50.27, up 7.5% for the day. The daily high was $50.55.