Shares in grain exporter and bulk handler GrainCorp jumped more than 10% at one stage yesterday after it reported a 66% surge in half year profit to $88 million.

The shares peaked at $8.60, a 52 week high, before closing up 8% at $8.38.

It was the highest price and close for the shares for nearly three years.

The last time they were around this level was in June 2008.

The result confirms that rural Australia is bouncing back sharply from the long drought. The results of Ruralco and positive outlook from earlier in this week also provide confirmation of the strong recovery underway in the rural sector.

But it wasn't just the soaring profit: interest dividend was lifted, with a special payment to be made, and the company lifted full year guidance as well.

GrainCorp told the ASX that wheat receivals, its core business, had doubled so far in 2011 to 14.4 million tonnes.

In turn that has boosted revenues by a massive $430 million to $1.34 billion.

As a result after tax interim earnings rose $35 million and the company is now expecting full year profit to be up $30 million to the range of $145 to $165 million.

Guidance for full year Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) jumped to between $310 and $340 million, from $275 to $310 million.

That implies second half EBITDA of $137 million to $167 million versus $100 million for the second half of the 2010 financial year.

GrainCorp shareholders will receive a 15c dividend per share, along with 5c special dividend.

That compares with a 7.27c a share dividend for the first half of 2010.

So in effect the interim payment has been almost tripled.

GrainCrop chief executive Alison Watkins said in yesterday's statement that it was a good result.

"Earnings from grain handling and marketing were all higher due to the record eastern Australian winter crop harvest, high grain receivals, an increase in the tonnage of grain marketed, and improved productivity," she said.

"Malt business earnings were marginally lower in a challenging environment characterised by unfavourable foreign exchange rates (high Australian and Canadian dollars) and continued soft beer demand in mature markets."

Graincorp said outlook for its grain storage unit was positive, with strong growth expected in the second half, but flat demand and the high Australian dollar would cut margins in its malt business.

"Second half earnings from grain handling will be supported by the significant carry forward of grain in our country elevators.

"This means earnings from storage will be higher than the previous half year.

"Significant revenue will be generated from handling this grain for both export and domestic customers in the second half.

"We expect grain exports to continue to be strong as exporters seek to deliver grain to customers in the lead up to the new season," Ms Watkins said.

On the company's malt business, malt front, Ms Watkins said, "Our new malt house at Pinkenba (Brisbane, Queensland) is close to commercial production. Malt from Pinkenba will replace production from the Toowoomba malt house which will close mid-year.

"We expect foreign exchange rates challenges and flat demand in mature beer markets to continue in the short term, and as a result, we expect malt margins to soften into financial year 2012."

Looking to the coming season, she said "planting of the 2011/12 eastern states cereal, pulse and oilseed crop is well underway, with farmers taking advantage of good subsoil moisture.

"Australian Crop Forecasters are predicting an eastern Australian wheat, barley and canola crop of 19 million tonnes; 3 million tonnes lower than the prior corresponding period, but well above the long term average.

"While crop conditions are looking promising in most regions, favourable planting and growing conditions are needed to ensure good germination and a strong harvest outlook."

New CEO at Perpetual, Chris Ryan has taken the familiar route of most new bosses in getting out the axe and hacking and slashing at what his predecessors left behind.

Yesterday Perpetual held a briefing on the new strategy adopted by the CEO. The end result is job losses, talk about cost savings and the usual stuff associated with a change at the top of a major company.

In this case the strategy, outlined in a five page release to the market, won guarded support with the shares up nearly 1.4% to $28.18, a rise on the day of 38c. The wider market was up 1.7%.

So 128 jobs are going and its private wealth platform is for sale.

The majority of job cuts were made this week across all of Perpetual's business units, with some managers being chopped, according to comments from Mr Ryan at the briefing.

But a total of 26 new jobs have been created in growth areas and the net savings will be around $9 million before tax from 2011-12.

Mr Ryan took over the CEO reins from David Deverall on February 14.

He briefed the market on the much anticipated new company strategy designed to reverse the company's declining performance that saw a 29% fall in first half net profit to $34.98 million.

"In the Perpetual Investments business unit, both the Australian equities and the Income & Multi Sector businesses will utilise their well recognised manufacturing strengths and develop new strategies and products to respond to what in recent years have been ever-changing and challenging market conditions.

"Demand and opportunities also exist for our involvement in the international equity asset class, which is continuing to grow as a proportion of investor portfolios.

"We currently manage a number of products, including international equities, global resources and Asian equities, and we are working hard on redefining our approach to this asset class," Mr Ryan said in the statement.

"In line with the portfolio decisions resulting from the review, Perpetual is taking a more active approach to the management of its capital. The first measure has been the revision of the Group's risk based capital requirements as at 31 March 2011 to $140 million in response to the continued reduction in risk assets and improved market conditions.

"This is well covered by the $236 million of cash and liquid investments on the balance sheet as at 31 March 2011.

"Perpetual is also lowering the amount of shareholder capital currently invested in certain seed funds by around $10 million and implementing a more disciplined approach to funding incubation strategies.

"Balance sheet exposure to Perpetual capital guaranteed products will continue to be reduced."

Mr Ryan said, "The Group currently has surplus capital and if we find suitable shareholder value creating opportunities, we will deploy capital for that purpose.

"If not, we will return it to our shareholders in an efficient and timely manner."

The briefing followed Perpetual's announcement to the market that underlying net profit in 2010-11 will be broadly in line with the previous year's $73 million.

"At the Underlying Profit After Tax level, the result for the second half of FY11 will reflect lower than expected inflows and the significant reduction in mortgage servicing levels as a result of the softer demand for housing finance.

"It will also include the $2 million cost incurred as a result of the senior management transition and $2 million in costs associated with outsourcing projects."

But the company will pay a final dividend higher than its official dividend policy allowed.

"Perpetual's final dividend for the year is expected to be around 90 cents per share fully franked, with the Company's strong capital position and ability to generate cash from operations allowing it to pay above its normal payout policy."

So in effect a small bit of good news for any worried shareholders to contemplate and to hang on to their shares, at least until the final dividend is paid later in the year.

And a reward for saying 'no' to the higher price from KKR approach late last year?

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