PRESS DIGEST-Australian Business News - Aug 29
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)
Equipment hire company National Hire (NHR.AX) yesterday announced a 2007-08 net profit of A$42.5 million, up from A$19.3 million the previous year. It was National Hire's first annual result after acquiring rival Coates Hire for A$2.9 billion last year in a private equity-backed deal. Managing director Andrew Aitken said the company, which is 66 percent owned by billionaire Kerry Stokes, "is committed to pursuing other opportunities that will assist in expanding the equipment sales and support business." Page 57.
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Troubled childcare centre operator ABC Learning Centres ABS.AX is today expected to restate its accounts following an audit by Ernst & Young. ABC Learning spokesman Andrew Barber said yesterday that the company had the support of key shareholders for the exercise. He declined to comment on the possibility that ABC Learning may yet extend its share trading halt and postpone its result announcement. Observers said continuing challenges meant the future of founder and chief executive Eddy Groves looked uncertain. Page 57.
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Brazilian mining group Vale RIO.N (VALE5.SA) has flagged an aggressive pipeline of projects in Australia. The global managing director of Vale's coal division, Renato Paladino, said in Brisbane yesterday that "Australia was off limits until a few years ago, but since we opened the office here in 2005, it has been good." However, he declined to comment on speculation that the company is set to make a takeover move on Brisbane-based Felix Resources (FLX.AX). Vale owns and operates the Carborough Downs coalmine in central Queensland. Page 58.
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Dairy Farmers revealed yesterday that farmers who have left the dairy co-operative since 2004 would receive a combined 30 percent of the takings from National Foods' proposed A$910 million takeover. Some Dairy Farmers shareholders who are still in the industry have expressed unhappiness at these terms, which were recommended early this week by the Dairy Farmers board. One farmer complained that the payout would dilute down the proceeds available to members who have remained with Dairy Farmers. Page 58.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Timber products company Gunns Ltd (GNS.AX) is no longer confident of securing finance or an equity partnership for its controversial A$2 billion Tasmanian pulp mill. While announcing Gunns' 2007-08 profit result of A$64.5 million, which fell short of its forecast of A$67 million, chairman John Gay said yesterday the company could not "provide an assurance that the mill project will proceed." Gunns faces a November 30 deadline set by Tasmanian Premier David Bartlett to obtain finance and begin construction. Page 21.
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HCF, Australia's third biggest health fund, has made a A$256 million takeover offer for Manchester Unity Australia (MUA). The board of MUA unanimously recommended the bid, which offers its members a cash payment of between A$200 and A$3000 depending on their individual policies. MUA chief executive John Brogden, a former New South Wales Liberal Party leader, said, "This is a very good deal for MUA." Mr Brogden will leave his position at MUA's helm if the deal goes through. Page 21.
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Queensland Gas Company (QGC) QGC.AX has booked a full-year profit of A$244.6 million in the 12 months to June 30, compared with a A$12.2 million loss a year earlier. Adding substantially to QGC's result was the sale of a 20 percent stake in some coal seam gas assets to Britain's BG Group (BG.L). QGC chief executive Richard Cottee said yesterday it had been a year of remarkable growth and the company would continue to expand and develop its reserves and infrastructure. Page 22.
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Theme park owner and film distributor Village Roadshow (VRL.AX) has booked a 10 percent increase in full-year net operating profit to A$62.2 million despite higher petrol costs and a decline in consumer sentiment. Chief executive Graham Burke said the tough economic conditions had attracted more people to the escapism of cinemas, DVDs and theme parks. He said more visitors were expected at the company's Movieworld, Seaworld and Wet'n'Wild theme parks this year following the addition of new attractions and rides. Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Distressed investment bank Babcock & Brown BNB.AX will restructure its business and sell back its management rights over one of its satellite funds, Babcock & Brown Communities Group (BBC) BBC.AX. Babcock & Brown announced yesterday that it will sell back the management rights for A$17.5 million and offload its holding of 64.8 million BBC securities to whoever acquires the rights. The move follows the exit last week of Babcock & Brown chief executive Phil Green and chairman Jim Babcock. Page 17.
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Power utility Origin Energy (ORG.AX) yesterday posted a net profit of A$517 million for the year to June 30, up 13 percent on fiscal 2007. Origin, which is the target of a hostile A$13.8 billion takeover bid from British-based BG Group (BG.L), predicted further earnings growth this year. "We are targeting growth in underlying earnings per share of at least 10 percent," said chairman Kevin McCann. Origin will next month reveal a joint venture partner for its plans to tap its coal seam gas reserves in Queensland. Page 17.
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Coalminer Macarthur Coal (MCC.AX) has reported a 9.3 percent rise in annual net profit to A$72.7 million, falling short of its July forecast of between A$80 million and A$90 million. The company blamed an accounting adjustment for the discrepancy. Higher coal prices and the sale of a 19.6 percent stake in its Monto Coal 2 project in central Queensland lifted revenue during the year to June 30 by 10.3 percent to A$400 million. Macarthur Coal shares fell A$1.50 to close at A$13.10 on the profit result. Page 18.
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Gaming and wagering company Tatts Group (TTS.AX) has delivered a full-year net profit of A$257.6 million. Excluding one-offs in 2006-07, the result was an 11.4 percent improvement on last year. Tatts flagged cost cuts to boost margins in fiscal 2009. It also plans to trim down spending on poker machines as it will lose its poker machine duopoly in Victoria with rival Tabcorp after 2012. "Our businesses have all got nice momentum as we move into the new financial year," chief executive Dick McIlwain said yesterday. Page 19.
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THE AGE (www.theage.com.au)
Rail freight operator El Zorro has won a won a bulk haulage contract from grain marketer AWB (AWB.AX). El Zorro business manager Geoff Tighe said yesterday that the firm will purchase up to six more locomotives, at a cost of between A$3 million and A$4 million each, to service the contract. Under the rail freight agreement, El Zorro will haul four trains from storage and handling sites in New South Wales, Victoria and other AWB grain stores around the country. Page B2.
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Home construction group Devine (DVN.AX) has tabled a fiscal 2008 net profit of A$31.85 million, an increase of 49 percent on the previous year. The result was lifted by the sale of a Gold Coast residential project to FKP Ltd (FKP.AX) for A$75 million. Devine said yesterday that despite "a significant and growing undersupply of housing in Australia," activity in the sector over the next 12 months remains uncertain due to factors such as the time taken to gain approvals. Devine forecast a 15 percent rise in profit this year. Page B2.
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Property group Trinity (TCQ.AX) has announced a 43 percent increase in full-year net profit to A$34.5 million. Excluding revaluations, underlying profit rose 25 percent to A$27.3 million. "We remain confident in our business model and ability to deliver long-term value to security holders," chief executive Ben McCarthy said yesterday. However, Mr McCarthy admitted there was a degree of uncertainty because of prevailing economic conditions and declined to give any forecast for the current financial year. Page B2.
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Official figures on the performance of Australia's five main ports show productivity is continuing to improve, with the average crane rate rising from 26.5 containers per hour in the September 2007 quarter to 27.2 containers in the December quarter. Melbourne was well above the national average, with a crane rate of 29.3 containers in December. The improvement came as ship and truck traffic climbed, although truck turnaround times lengthened slightly due to congestion. Page B4. --
