PRESS DIGEST-Australian Business News - Feb 26
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)
Australian port and rail infrastructure owner Asciano (AIO.AX) yesterday reported its first-half results, including a net loss of A$93.4 million. Analysts say investors are disappointed that the company has yet to sell any of its assets to help reduce the company's A$1 billion of debt, although chief executive Mark Rowsthorn said Asciano was within one to two weeks of naming a preferred bidder for its coal haulage business. Asciano, which had a market capitalisation of A$8 billion when spun off in 2007, is now worth A$328 million. Page 13.
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Australian media planning and buying company Mitchell Communication Group yesterday reported its first-half results, with net profit rising 12 percent to A$8.1 million. Executive chairman Harold Mitchell rejected predictions that the advertising market would collapse this year, saying "we talk to at least one of our large clients every day and, in general, their mood is still positive.' Chief executive Stuart Mitchell said the company was still confident that full-year earnings would achieve 10 percent growth. Page 14.
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Online employment advertising group Seek (SEK.AX) yesterday released its first-half results, including a fall in net profit of 9 percent to $32.5 million. The company cut its interim dividend to A4.5 cents, down from the previous year's A8.7 cents, to help fund a reduction in the company's debt of A$152 million. Seek said online job advertisements had fallen in volume since October, with further falls expected during the second-half. Analysts expressed relief that the results had not been worse, with Seek shares rising A40 cents to close at A$2.51. Page 14.
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Australian electricity retailer AGL Energy (AGK.AX) yesterday reported its first-half results, with a 5.3 percent rise in underlying profit to A$192.5 million. Net profit for the half was A$1.65 billion after AGL received A$1.5 billion from asset sales, and the company maintained its dividend payment of A26 cents. Managing director Michael Fraser said that during the past year significant changes had been made "to get it in good shape and we're pretty well set up to handle most economic conditions.' Page 16.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Australian television and publishing company Seven Media Group has had its value cut to zero by Seven Network Ltd (SEV.AX), which has a 47 percent stake in the group. The stake had previously been valued at A$793.9 million. Seven Network's largest shareholder and executive chairman, Kerry Stokes, downplayed the significance of the move, calling it an accounting measure, adding that "make no mistake, the Seven network means an awful lot to Seven Network Ltd.' Page 17.
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Australian miner OZ Minerals (OZL.AX) must convince banks to extend its debt facilities beyond tomorrow if the A$2.6 billion rescue bid from China's Minmetals is to proceed. Market speculation that OZ would not be able to secure the extension led to a 21 percent fall in the value of the company's shares of yesterday, before recovering to close 15.4 percent down at A50 cents. OZ said its negotiations with the banks had been positive, however, the deal also requires approval from the Federal Government. Page 17.
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Regional pay-TV group Austar (AUN.AX) yesterday released its full-year results, including a 20 percent increase in operating earnings to A$209.3 million, although higher depreciation and interest costs reduced net profit by 19 percent to A$34.5 million. Chief executive John Porter said the current year's growth will be reduced not only because of the economic downturn, but that "all of the natural disasters that have struck Australia since January have happened in Austar's territory.' Page 18.
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Media group APN News & Media (APN.AX), which owns radio and outdoor advertising businesses in Australia as well as newspapers in Australia and New Zealand, yesterday reported its full-year results, with net profit falling 17 percent to A$140.1 million. Chief executive Brendan Hopkins said that although the company expects net profit to again fall in 2009, there are signs of recovery in the advertising market, saying that "March looks significantly better across all our businesses. Page 18.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Australian miner Macarthur Coal (MCC.AX) yesterday reported its first-half results, with net profit rising to a record A$106.9 million, compared to last year's profit of A$13.5 million during the corresponding period. The company said it expects second-half sales of its thermal coal product to rise to 30 percent of its production volume, as demand for its PCI product, used by steelmakers, remains weak. Macarthur said uncertainty over sale prices and product mix meant it was unable to provide full-year profit guidance. Page 27.
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Macquarie Airports (MAP.AX) yesterday released its full-year results, increasing net profit to A$2.1 billion, an 87 percent increase on the previous year, although the result was boosted by the part-sale of stakes in Brussels and Copenhagen airports. The fund said it intends to maintain its dividend at A27 cents a share. Chief executive Kerrie Mather denied that the fund's decision to inject a further A$780 million into Sydney Airport was due to an inability to refinance two debt facilities worth A$870 million. Page 27.
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Australia's second largest listed winemaker, Australian Vintage (AVG.AX), yesterday reported its first-half results, with a net loss of A$128 million, including A$175 million of write-downs. The company said debt had increased to A$169 million, which will now expire on February 28, 2010, after being extended by five months. Shares in Vintage, previously known as McGuigan Simeon, fell to A18.5 cents a share yesterday, the sixth day in a row of falls in the company's share price. Page 28.
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Australian internet service provider, iiNet (IIN.AX), yesterday reported results for the first-half of the financial year, with net profit rising by 18 percent to A$11.4 million, while revenue rose by 75 percent to A$204 million. The company said it will pay a dividend of A3 cents a share in April. iiNet again said it would look for acquisitions to increase market share, such as its purchase of rival Westnet last year, and is aiming to achieve a market share of between 7 percent and 15 percent within five years. Page 28.
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THE AGE (www.theage.com.au)
Around 1800 Australian exporters who have made claims of over A$40,000 in Federal Government export market development grants for 2007-08 will not receive the full amount they are entitled to under the scheme. Trade Minister Simon Crean said the Government would only pay in full claims up to $40,000, with claims above that amount to receive between 30 percent and 50 percent of the extra entitlements. Mr Crean said the scheme had been underfunded by the previous Howard government. Page B2.
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Private health insurance provider NIB Holdings (NHF.AX) yesterday reported its first-half results, with net profit falling 88 percent to A$2.1 million. Despite the fall, chief executive Mark Fitzgibbon said the insurer is still hoping to make acquisitions, as smaller health funds struggle, particularly from negative investment returns. Mr Fitzgibbon also reacted to recent reports that Treasury officials had criticised the private health insurance rebate, saying he believes the Government "remains committed' to supporting private health insurance. Page B2.
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Gas transportation company APA Group (APA.AX) yesterday reported its first-half results, with net profit falling 50 percent to A$18 million due to hedging, tax and transaction costs. Despite the fall, underlying profit rose by almost 27 percent to A$56.7 million. Managing director Mick McCormack said the economic downturn was affecting the sector less than others, and that "in APA's experience gas used in cities and regional towns…has not contracted markedly in times of economic slowdown.' Page B2.
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The board of Australian miner Fortescue Metals Group (FMG.AX) yesterday decided to cancel plans to hold a A$500 million capital raising unless institutional investors were prepared to pay the same price per share that China's Hunan Valin Iron & Steel recently paid. Fortescue sold A$558 million of equity to Hunan at $2.48 a share, and the company does not want to embarrass Hunan by issuing further stock at a discount, although Hunan purchased the majority of its 16.5 percent stake from Harbinger Capital Partners at A$2.28 a share. Page B2. --
