Aristocrat grapples with tough conditions - 28th August 2008

Aristocrat Leisure, an Australian gaming machine maker, reported a 44% fall in first-half profit as it grappled with tough economic conditions in key markets.

Aristocrat, the world's No. 2 slot machine maker, said net profit for the six months to June was $70.4 million, down from $125.9 million a year ago. Profit was down 36% in constant currency terms.

The company declared an interim dividend of 14 cents per share.

In late July, Aristocrat forecast a net profit of $70 million and said the first-half earnings were significantly impacted by deteriorating economic conditions in North America and Australia and a rising Australian dollar.

Aristocrat shares have halved in value this year, more than double the decline in the benchmark S&P/ASX 200 index in the same period.