PRESS DIGEST-Australian Business News - Feb 10
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)
Medical centre and pathology company Primary Healthcare (PRY.AX) has reported a 44 percent decrease in net profits to A$11.5 million for the December-half, compared with a year earlier. Chief executive Ed Bateman said yesterday that the cost benefits of the company's A$2.7 billion takeover of rival Symbion Health were 'materially above A$100 million,' and would increase over time. Dr Bateman maintained that Primary would still achieve its full-year earnings guidance of A$350 million. Page 16.
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Queensland coal-seam gas producer Pure Energy (PES.AX) has been targeted by British energy company BG Gas (BG.L) in a A$796 million takeover move. Pure is being offered A$6.40 a share by BG Gas, A$1.01 higher than the current bid by Arrow Energy (AOE.AX). The bid was aimed at giving BG 'further resources to pursue domestic and some export LNG [liquid natural gas] opportunities,' David Maxwell, senior vice president of BG subsidiary Queensland Natural Gas, said yesterday. Page 16.
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Discount carrier Virgin Blue (VBA.AX) has signalled it will not undertake a capital raising, despite expecting to post a net loss for fiscal 2009. Virgin Blue, which has already been forced to freeze salaries, defer all capital expenditure and decrease its costs by around A$50 million, conceded it would consider further capacity cuts and capital-management ideas. Chief executive Brett Godfrey said yesterday that 'we will be looking to reduce some capacity in the Australian domestic market.' Page 17.
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Printing and distribution company PMP (PMP.AX) has said it will close two printing operations in an effort to cut costs in the face of falling demand. The printing plants being closed, at Salisbury South in South Australia and Wacol in Queensland, will result in 76 redundancies. Chief executive Richard Allely, who has been in the job less than two weeks, said yesterday that the closures would 'deliver much needed cost-reduction benefits in the second-half of the year.' Page 17.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining services company the MAC Services Group (MSL.AX) has reported a 34 percent increase in net profit for the December-half to A$12.1 million, compared with a year earlier. The company also raised its dividend payout by 21 percent. MAC services chief executive Mark Maloney said yesterday that the strong performance was due in part to a 'fairly conservatively geared balance sheet' and an 'exposure to the major blue-chip clients.' However, Mr Maloney warned that the severe wet weather in parts of Queensland 'may have an effect on second-half earnings.' Page 20.
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Financial services provider IOOF Holdings (IFL.AX) is expected to post a 53 percent decrease in underlying profit to A$7.3 million for the December-half, according to broker Credit Suisse. Melbourne-based IOOF yesterday conceded that its investment performance since September had been 'regrettably poor,' ahead of its planned A$540 million merger with wealth management products provider Australian Wealth Management AUW.AX. Page 21.
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Shares in Queensland bank and insurer Suncorp (SUN.AX) have fallen to their lowest point in over ten years, after it was forced to raise capital at a record 30 percent discount. Yesterday's over-subscribed institutional share placement, which was priced at A$4.50 a share, was aimed at shoring up its balance sheet and covering a rise in bad debts, according to analysts. Suncorp's shares fell 25.5 percent to close at A$5.31 in yesterday's trading. Page 21. Continued...
