PRESS DIGEST-Australian Business News - Aug 20

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Logistics and pallet supply group Brambles (BXB.AX) yesterday reported a 3 percent increase in pre-tax profit for the year to June of US$614.9 million. The company's United States CHEP pallet business, the company's largest source of earnings, saw net new business decline by US$9 million, with chief executive Tom Gorman signalling that the company would seek to diversify away from the increasingly competitive sector. Page 41.

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Engineering group Downer EDI (DOW.AX) yesterday reported a 98 percent fall in net profit for the 2010 financial year to just A$2.9 million. Chief executive Grant Fenn, who took on the role earlier this month, said "whichever way we like to look at it, this business is being rather heavily impacted by an overhang on the Waratah PPP [public private partnership]." The company is due to deliver the first of 78 eight-car Waratah train sets to New South Wales' Railcorp by the end of the year. Page 41.

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Cinema, hotel and ski resort group Amalgamated Holdings (AHD.AX) yesterday reported full-year results for the 2010 financial year, with net profit rising 42.2 percent to A$98.8 million. Managing director David Seargeant said the cinema division was benefiting from the introduction of 3D movies, while the hotels arm of the business was seeing renewed demand from the corporate market. Page 42.

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Print and distribution group PMP (PMP.AX) yesterday reported annual results following a year that saw the company lose several clients and cut 11 percent of its workforce. Chief executive Richard Allely did not provide guidance for the coming year, but said PMP's operating earnings would improve, adding that "the group is now far more efficient, customer-focused and properly structured." Page 42.

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THE AUSTRALIAN (www.theaustralian.news.com.au)

Wealth management group AMP (AMP.AX) yesterday reported results for the six months to June, with the underlying profit of A$383 million a 4.4 percent increase compared to the first-half of 2009. However, the results were below market expectations, prompting shares in AMP to fall 4.3 percent to A$5.09 a share. Chief executive Craig Dunn said retail investor sentiment remained low, and was unlikely to improve until the United States economy recovers. Page 21.

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Wesfarmers (WES.AX) chief executive Richard Goyder yesterday defended the company's conglomerate model, after a sharp fall in earnings from the group's resources division was offset by strong growth in its retail division. Wesfarmers reported a net profit of A$1.57 billion for the year to June, a 2.8 percent increase over last year. Earnings before interest and tax from the group's Coles supermarket business grew 16 percent to A$962 million. Page 21.

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Food manufacturer Goodman Fielder yesterday reported full-year results, with net profit down 8.3 percent to A$16.11 million. The company said it expected to return to mid-single-digit profit growth in the coming year. Chief executive Peter Margin said Goodman Fielder would not be exposed to fluctuations in commodities including wheat, dairy products and oils for much of the 2011 financial year, having hedged its required purchases for the period. Page 22.

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Hospital and Pathology company Healthscope yesterday reported results for the year to June, with net profit rising 37 percent to A$99 million. Chief executive Bruce Dixon also spoke out in support of the group's takeover by private equity group's TPG Capital and The Carlyle Group. "The benefit of private equity is … you can fast-track things without upsetting investors," Mr Dixon said. Page 23.

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THE SYDNEY MORNING HERALD (www.smh.com.au)

Executives from mining companies BHP Billiton (BHP.AX) and Rio Tinto (RIO.AX) believe their proposed A$130 billion iron ore joint venture in Western Australia's Pilbara region is "dead and the coffin's being lowered into the ground." Industry sources believe regulators, including the Australian Competition and Consumer Commission and the European Commission, are set to oppose the deal on competition grounds. Page 1.

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Zhou Zhongshu, president of Chinese resources company Minmetals, yesterday said the company is looking for further acquisition opportunities in Australia, following last year's purchase of OZ Minerals. Mr Zhou said he had instructed the company's Australian subsidiary, MMG, to look beyond the group's existing portfolio of copper, zinc and lead assets. "I'm also interested in iron ore and coal assets," Mr Zhou said. Page 6.

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Insurance company QBE QGE.AX yesterday reported a 39 percent fall in net profit for the six months to the end of June, to US$440 million. The reduction was primarily due to lower returns from investments, of which 99 percent are in liquid assets and cash. Chief executive Frank O'Halloran defended the insurer's investment strategy, saying that shareholders could have suffered much larger capital losses if it had made higher-risk investments. Page 7.

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Michael Geoghegan, chief executive of banking group HSBC (HSBA.L), yesterday spoke in Sydney as he started a 14-day tour of the bank's operations in 27 countries. Mr Geoghegan said Australia and Canada are set to benefit strongly from the coming global recovery, and growing demand for commodities from developing countries. Mr Geoghegan said the two countries "are going to be the outstanding stars in helping the developing world to grow." Page 7.

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THE AGE (www.theage.com.au)

A deal was reached last night to save Melbourne's DFO South Wharf shopping centre from receivership. Guy Jalland and Andrew Kroger, trustees for Australian Competition and Consumer Commission chairman Graeme Samuel, reached an agreement with four banks owed A$450 million that is secured against the South Wharf project. Suncorp-Metway, National Australia Bank, St George and BOSI will finance the venture so construction can be finished. Page 1.

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Broadcasters Foxtel and Channel Ten (TEN.AX) have signed Mars and Vodafone as principal sponsors for the Commonwealth Games in Delhi later this year. The sponsorship will cost both companies A$3.9 million each. AAMI, Hungry Jack's, Commonwealth Bank (CBA.AX) and Coles are also principal sponsors. Foxtel and Channel Ten are expected to make A$40 million from the event. Page 7.

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