PRESS DIGEST-Australian Business News - May 23
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)
Building products group James Hardie (JHX.AX) has posted a full-year profit of US$169.7 million (A$176.1 million), below its previous guidance of US$175 million. Sales fell to US$1.47 billion from US$1.54 billion last year. Slowing demand in the United States for the companys home siding products weighed on the result. "We just don't know how long [the slowdown] is going to go," chief executive Louis Gries said yesterday. James Hardie shares finished the day down A45 cents at A$5.58.Page 55.
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The new managing director of retailer Coles Group (WES.AX), Scotsman Ian McLeod, arrived in Australia yesterday to begin the job. He faces a considerable challenge in closing the widening gap between Coles, which was acquired for A$18 billion last year by West Australian conglomerate Wesfarmers, and market leader Woolworths. A former senior executive with supermarket chain Asda in the United Kingdom, Mr McLeod was chief executive of British car parts and bicycles retailer Halfords in his last job. Page 56.
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Diversified manufacturer and marketer GUD Holdings (GUD.AX) yesterday posted an 18 percent rise in half-year profit to A$17.5 million on a 7 percent increase in sales to A$285.2 million. GUD manufactures and distributes products such as Victa lawnmowers and Sunbeam home appliances. Managing director Ian Campbell said higher costs due to the strength of the Australian dollar clouded the chances of significant growth next year. He said costs had risen particularly on metals and of course plastics, which are a petroleum byproduct. Page 59.
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Beer and wine group Lion Nathan LNN.AX yesterday reiterated that its profit for the 12 months ended September 30 would rise by 10 percent to 12 percent, falling in the range of A$295 million to A$315 million. Lion, in which Japan's Kirin Holdings has a 46 percent stake, has under chief executive Rob Murray been working according to a multi-faceted growth plan since 2004. Investors are expected to closely watch the performance of the company's flagship beer division, which includes brands such as Tooheys New, Tooheys Extra Dry and XXXX. Page 60.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Taxation Office could prosecute at least 50 more people over the use of overseas tax havens, Tax Commissioner Michael D'Ascenzo said yesterday. To those who abuse tax havens, the best advice is come in, make a voluntary disclosure, get your affairs in order and move on, Mr D'Ascenzo told the Italian Chamber of Commerce and Industry in Sydney. The only successful conviction so far in the exercise, codenamed Project Wickenby, has been that of music entrepreneur Glenn Wheatley. Page 21.
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A Chinese steel group could pick up a stake in West Australian (WA) iron ore miner Fortescue Metals Group (FMG.AX). "We're not ruling out the possibility of buying shares in Fortescue Metals Group," Sinosteel chairman Huang Tianwen said yesterday. Shares in Fortescue, which last week shipped its first iron ore from its operation in WA's Pilbara region, rose A46 cents to close at A$9.70 following Mr Huang's statement. The share price climb propelled Fortescue founder Andrew Forrests personal wealth close to the A$10 billion mark. Page 21.
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Board of Taxation chairman Dick Warburton has called on the Federal Government to take another look at Australia's 30 percent corporate tax rate as part of its taxation review. "[The company tax rate] is certainly high as a percent of GDP -- it certainly should be on the top of the list," Mr Warburton said yesterday. Besides corporate tax, he called for a reappraisal of the GST and the interaction between tax and welfare. Federal Treasurer Wayne Swan launched the 18-month tax review in the recent budget. Page 22. Continued...
