| MTS | Reported revenue rose 3.5% from 1H12 to $6.34 billion. Wholesale sales rose 3.5% from 1H12 to $6.28 billion. EBITA grew 1.2% from 1H12 to $206.2 million. Underlying Profit After Tax grew 4% from 1H12 to $121.3 million. Reported Profit After Tax 1H13 of $82 million. Operating cash flow 1H13 of $144.7 million. Underlying earnings per share 1H13 of 14.5 cents per share. Reported earnings per share, after significant items and discontinued operations (Franklins Retail Stores) 1H13 of 9.8 cents per share. Dividend per share 11.5 cents fully franked | Company report |
| LYC | Lynas is pleased to announce that first feed to kiln and commencement of operations are now underway at the Lynas Advanced Materials Plant in Malaysia. Initial feeding of concentrate into the kiln has occurred, and the current plan is to progress to continuous feed by next week. | Company report |
| QAN | Qantas Group passenger numbers for October 2012 were up 7.4 per cent from the previous year. RPKs increased by 3.4 per cent and ASKs increased by 5.5 per cent, resulting in a revenue seat factor of 79.8 per cent, which was 1.6 percentage points lower than the previous year. Qantas Group passenger numbers for the financial year to date (October 2012) were up 3.5 per cent from the previous year. RPKs increased by 0.6 per cent, and ASKs increased by 2.3 per cent, resulting in a revenue seat factor of 79.7 per cent, which was 1.3 percentage points lower than the previous year. As previously disclosed, Qantas Group yield (excluding the impact of foreign exchange movements) is expected to be lower in 1H FY13 compared to 1H FY12, largely due to increased capacity in the domestic market. | Company report |
| GNC | GrainCorp has welcomed two developments that will substantially improve the flexibility and international competitiveness of the company’s bulk grain port terminals. The ACCC has announced this morning that it will not object to GrainCorp offering long-term agreements (LTAs) to exporters for access to its ports. LTAs will be offered under revised port terminal services protocols (Port Protocols) that come into effect next month. In addition, federal parliament last night passed the Wheat Export Marketing Amendment Bill 2012, which provides for an industry code of conduct to replace the existing Port Access Undertaking arrangements from 2015. GrainCorp Managing Director and Chief Executive Officer Alison Watkins said the developments were a significant step forward for all participants in the eastern Australian grain industry. Together, these developments are central to delivering the port flexibility initiatives included in the target of $110 million of additional underlying EBITDA that was announced at GrainCorp’s FY12 result and strategy update on 15 November 2012. “GrainCorp’s revised Port Protocols will make the grain in our network more internationally competitive. They allow longer term planning by exporters and far more flexible port operations,” Ms Watkins said. “These changes have benefits across the industry. Our exporters can plan and respond more effectively to the challenges of the increasingly dynamic international grain market; growers get more competition for their grain, particularly from international markets; and the major customers of Australian grain in Asia and the Middle East will have greater certainty that they will have a reliable supply of high quality Australian grain,” Ms Watkins said. Currently, all port capacity can be made available only one year ahead. Under the new arrangements, 60% of port capacity will be made available for three-year LTAs – substantially expanding the grain accumulation and export planning horizon for exporters. |
Company report |
| PRY | Operating EBITDA for FY2012 was up 10% to $351.1m. Net profit after tax was up 49% to $116.6m. Basic Earnings Per Share (EPS) was up 47% to 23.3 cents. This pleasing result was driven by strong revenue and margin gains across all the major divisions, reflecting the operational dedication and focus of management. The strength of the trading result is reflected by the following key indicators: Medical Centres EBITDA growth of 15% in the 57 large-scale centres Medical Centres EBITDA margin up 50 basis points to 55.2% Pathology EBITDA growth of 11.6% to $132.4m and organic revenue growth of 6.1% Pathology EBITDA margin for 2H FY2012 17.7%, up from 16.0% for 1H FY2012 Imaging EBITDA growth of 37% to $59.4m and Imaging EBITDA margin up from 15.2% to 19.3% Complementing this strong trading result, free cash-flow improved significantly in the second six months of FY2012. Net cash provided by operating activities improved by $68m in FY2012 over the prior year. | Company report |
| FKP | Underlying profit of $94.7m, in guidance range of $91.9-$104.3m. Statutory loss of $350.3m largely impacted by adoption of appropriate valuation assumptions given market conditions. FY12 distribution of 2.8 cents per stapled security. Underlying EPS of 7.9cps. NTA per stapled security of $0.58. Gearing of 32% | Company report |
| US | The Standard & Poor’s Case-Shiller 20-city price index increased by 0.4%, seasonally adjusted, in September from August, and the 10-metropolitan-area index rose by 0.3%. Year-over-year, the 10-metro index was 2.1% higher, while the 20-city index was up by 3.0%. Prices for the third quarter were 3.6% higher compared with the same time last year. | Morningstar |
| US | The Federal Housing Finance Agency’s price index increased by 0.2% in September, seasonally adjusted, from August, marking the eight consecutive month with an increase. Although the reading was lower than the expected 0.4% gain and the August gain was revised downward, home prices are still 4.4% higher year over year. | Morningstar |
| US | the Federal Reserve Bank of Chicago’s Midwest Manufacturing Index declined to 92.1, seasonally adjusted, in October, a 1.2% drop from September’s reading and the third straight month with a sequential decrease. Only the auto sector remained positive for the month, though the overall index was 5.9% higher compared with the same time last year. The Richmond Fed’s manufacturing index for the Mid-Atlantic region improved to 9 for November from October’s reading of negative 7, indicating that activity in the region is expanding. | Morningstar |
| China | the Chinese government approved investments worth an estimated 160 billion yuan for construction of subways and railways across four cities so far this month in a bid to boost economic recovery. | Morningstar |
| EU | after European Union leaders, IMF and the European Central Bank agreed to reduce Greece’s debt-reduction target to 124% of gross domestic product by 2020, and below 110% by 2022. Along with this, the authorities also agreed to extend loan maturities and reduce interest rates on loans that Greece is repaying to international creditors. The next batch of bailout funds worth 34.4 billion is expected to delivered to Athens in December. | Morningstar |
| Aust | Australia’s trade deficit more than doubled in the third quarter on account of a slump in exports of iron ore and coal | Morningstar |
| NUF | Nufarm announced that the Federal Court will be asked to give final approval to a settlement of the class action brought against the company by Maurice Blackburn and Slater & Gordon in early 2011. The settlement agreement has been amended to cover an expanded number of claims, with the Company agreeing to pay a total of $46.6 million (previously $43.5 million). The previous proposal was subject to several conditions including a process whereby claims had to be registered and assessed. That process has resulted in a higher number of claims than was previously anticipated. All parties have now agreed with the revised settlement and it will be considered by the court at a hearing in Melbourne on 28 November 2012 | Morningstar |
| CGF | Challenger announced that Standard & Poor’s have recently completed their annual ratings review and announced that they have affirmed Challenger Life Company ‘A’ (stable outlook) and Challenger Limited’s ‘BBB+’ (stable outlook) ratings. The Company also announced that Colony Marlin-Holdings LLC’s options to acquire approx. 57.1 million ordinary Challenger shares have expired. The options were issued in November 2007 and, in accordance with their terms, expire on 26 November 2012 being the date of Challenger’s 2012 Annual General Meeting. The Company confirmed that the options have not been exercised and have expired. | Morningstar |
| CSL | Blood products and vaccine maker CSL Limited lifted its net profit outlook for fiscal 2013 in US dollar terms by approximately 20 per cent, despite competitive business conditions. In August this year, the company reported a net profit after tax of US$1,024 million and provided guidance for profit growth of approximately 12 per cent during fiscal 2013. CSL managing director Brian McNamee said the improved outlook for the financial year is largely underpinned by the performance of the CSL Behring division. “A number of factors have contributed, including a higher level of sales, a better sales mix and improved efficiencies across the supply chain,” he said in a statement. Also contributing to the better outlook, McNamee said, is higher-than-anticipated royalty income from sales of the GARDASIL, a vaccine used in the prevention of certain types of human papillomavirus (HPV). Earnings per share growth for fiscal 2013 will exceed profit growth expectations as shareholders benefit from the ongoing effect of share buybacks, CSL said. In compiling the company’s financial forecasts for fiscal 2013, CSL cautioned that a number of key variables may have a significant impact on guidance. These include material price and volume movements in plasma products, competitor activity, changes in healthcare regulations and reimbursement policies, and royalties arising from the sale of HPV vaccine. Other variables include internationalisation of the company’s influenza vaccine sales and plasma therapy life cycle management strategies, enforcement of key intellectual property, regulatory risk, litigation, the effective tax rate and foreign exchange movements. | Morningstar |
| UK | The Bank of England’s Financial Policy Committee has accused British banks of possibly misleading investors about the health of their finances. In its semi-annual report, the panel said banks may be overstating capital levels by not recognizing potential losses on loans and playing down risks. Banks may also not have made enough provisions to cover the costs of compensating customers for the mis-selling of certain financial products | Seeking Alpha |
| RIO | Rio Tinto intends to slash $7B of costs, including $5B of operating expense over the next two years and a further $2B in spending cuts mostly at its struggling aluminum and Australian coal operations. Commodity prices are weak, yes, but in just five years, Australia has gone from being among the cheaper places to operate to the most expensive. | Seeking Alpha |
| WOW | The Indian government has buckled to intense pressure and agreed to votes in both chambers of parliament over its controversial proposal to allow foreign retailers to own up to 51% of domestic supermarkets. While the votes will be symbolic, a loss for the government will be a setback in its attempts to reform the economy and spark growth | Seeking Alpha |
| EU | Italy has sold €2.98B of 10 year bonds at a yield of 4.45%, down from 4.92% in a previous auction and the lowest in two years. The government also issued €3B of five-year paper at 3.23%, down from 3.8%. The total sale of €5.98B was at the top end of the government’s target of €4-6B. In the secondary market, 10-year yields were -7 bps at 4.53% midday in Europe | Seeking Alpha |
| China | S&P has reiterated China’s sovereign long-term rating at “AA-” and its outlook at stable, citing “strong economic growth potential, (a) robust external position, and the government’s relatively healthy fiscal position.” Despite the conservative nature of China’s new Politburo Standing Committee, S&P reckons that “efforts toward deepening structural and fiscal reforms are likely to continue.” | Seeking Alpha |
| US | Frustrated with the lack of substantial job gains, many Fed officials want the bank to continue buying long-term Treasurys even after Operation Twist expires. The purchases would be in addition to the $40B a month of mortgage-backed securities that the Fed’s been scooping up. Under Twist, the bank’s been paying for the long-term Treasurys with short-term paper, but as the latter is running out, the Fed will have to print money to keep the program going | Seeking Alpha |
| Sth America | An appeals court yesterday allowed Argentina to delay the payment of $1.3B of defaulted debt to bondholders who refused to accept haircuts on the paper, pending a further ruling. A district judge had ordered the country to place the money into an escrow account by Dec 15 if it pays out $3B of restructured debt, as scheduled. The lower court ruling had sparked fears that Argentina could default | Seeking Alpha |
| China | MNI Business sentiment Indicator for China at 53.78 for Nov. vs. 51.86 Oct & 51.35 Sept. | Market Watch |
| FXL | expected to run the ruler over debtor finance provider Scottish Pacific when it is formally put up for sale in January | AFR |
| NWT | NewSat could launch its long-awaited equity raising on Monday, provided it can first sign off on a mezzanine debt package | AFR |
| RIO | Chief executive Tom Albanese was bearish on the outlook for Australia’s coal industry, given competition from unconventional gas and coal suppliers in the US, Indonesia & East Africa | SMH |
| RIO | Rio Tinto will cut $5bn in cost out of its mining operations to make up for weaker commodity prices and the impact of the strong AUD, warning of job losses if labour productivity does not improve at its Australian east coast conglomerates | AFR |
| BHP | Marius Kloppers has queried the insistence of government that the Browse liquefied natural gas project be built at James Price Point and signalled the group could exit the venture if it doesn’t stack up against competing investments | AFR |
| ASX | The ASX will give stockbrokers a rebate on their trading fees in an effort to boost investment activity and ward off growing competition. As part of the new scheme that begins on January 1, the ASX’s fee revenue above an annual growth threshold will be shared equally between the exchange and brokers, with the growth threshold set at zero for the first 18 months | AFR |
| SGP | Stockland’s new boss, Mark Steinert, has promised to conduct a “deep analysis” of the company before making any strategic changes at Australia’s largest residential developer | AFR |
| TLS | The head of Telstra’s $2bn a year wholesale business says the division remains an important part of the carrier’s strategy, despite the advent of the wholesale-only NBN | AFR |
| US | Third-quarter growth in the U.S. gross domestic product was revised higher to 2.7%, compared with an initial reading of a 2% gain | WSJ |
| US | Weekly jobless claims fell, but the four-week average remained high. Initial unemployment claims fell by a slightly larger-than-expected 23,000 to 393,000 last week. The four-week moving average rose 7,500 to 405,250. The Labor Department said that this week’s data was not impacted by superstorm Sandy. | WSJ |
| EU | The first improvement in euro-zone business confidence since spring suggests companies may hold off from steep cuts to investment spending. Eurozone economic confidence came in at 85.7, which was higher than the consensus of 84.5. | WSJ |
| EU | German unemployment data was also better than expected, with the number of jobless rising 5,000 in November versus the 16,000 forecast | Citi |
| EU | Officials proposed an overhaul that would create a common budget for the 17 nations using the single currency and grant powers to issue debt collectively backed by the currency bloc. | Citi |
| US | Pending home sales rose 5.2% in October. Economists had expected a more modest 1.0% increase in sales. | Morningstar |
| Japan | Japanese leader Shinzo Abe said he was in favour of “unlimited monetary policy easing” to keep inflation at 2 per cent. Abe leads the main opposition Liberal Democratic Party, which looks set to win the December 16 -general elections | Morningstar |
| RIO | Rio Tinto (RIO) on Thursday said it is targeting cumulative cost savings of more than US$5 billion by the end of 2014. At an investor seminar in Sydney, the global mining giant said its planned spending on exploration and evaluation projects will be reduced by US$1 billion over the remainder of 2012 and 2013. It also said capital expenditure on approved and sustaining projects will taper off from current levels in 2013. “We are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity,” Rio Tinto chief executive Tom Albanese said. “We are investing in the highest-returning opportunities, delivering major projects on time and are taking advantage of the inbuilt flexibility in our phased investment programmes. “We have the ability to respond to changing market conditions and I am confident we have the right strategy to maximise shareholder value in the long term.” In a statement, Rio Tinto said while the short-term global macro outlook remains volatile, with major uncertainties around future US and European growth, the company “is guardedly optimistic” on China’s prospects. With a number of recent macro indicators suggesting early signs of an economic pickup, Rio Tinto said it expects a slight rise in Chinese GDP growth to above 8 per cent next year. Rio said it will benefit from three major sources of production growth in 2013, including: expansion of iron ore production capacity at its Pilbara operations; first commercial production from the Oyu Tolgoi copper-gold mine in Mongolia; and the ongoing ramp up of the Yarwun 2 alumina refinery in Queensland | Morningstar |
| Aust | New home sales from HIA, showed a 3.4% increase for the month after coming off consecutive dips | Morningstar |
| Aust | Capex figures came in better than expected with private expenditure up 2.8%. Expectations were for a 2.0% rise. | Morningstar |
| AQA | Aquila Resources has grand ambitions — the mid-cap miner is concurrently developing a 1.2b Australian dollar (US$1.25b) coking coal mine in Queensland with a A$7.4 billion iron ore project in WA. So, it shouldn’t come as much of a surprise that management is looking for a bit of help to foot the bill. Aquila says it’s seeking a co-investor for the Eagle Downs coking coal project in order to finance its development. The Perth-based company is on the hook for A$640m to fund its 50% share of the project through to the first 100,000 tons of coal production. Brazil’s Vale is responsible for the rest. Aquila’s share of operating costs before the mine even starts production is estimated at a hefty A$222m. The miner expects to secure debt to help fund the project as well, particularly so it doesn’t have to raise any new equity. At the end of September, Aquila had A$477m in cash and liquid assets. Securing debt funding may not be easy given that coking coal prices have fallen 30% already this year, and mining leaders including BHP Billiton Chief Executive Marius Kloppers say the chances of a substantial recovery in prices in the near term are slim. Aquila’s shares are down by two-thirds this year to value the company at A$959m, mirroring declines by other Australian-listed miners as China’s economy cooled and commodity prices fell. Aquila’s confident it won’t be hard to find funds for Eagle Downs. Management led by executive chairman Tony Poli said Friday that “several” firms have suggested they’re willing to provide debt. The project will produce 4.5 million tons of coking coal annually from 2016. Eagle Downs isn’t the only major project currently on its drawing board–Aquila also needs funds for the proposed A$7.4 billion West Pilbara Iron Ore Project in WA. However, the iron ore project is being held up by delays to financing. Also last month, Aquila said it hadn’t been able to reach agreement with co-investor AMCI on the project’s budget for the 2013 fiscal year and arbitration was underway. Aquila has proven capable of selling stakes in the past. In April, the company raised A$430m from the sale of its 50% interest in the Isaac Plains coal mine in Queensland to Japan’s Sumitomo. The company says it also hopes to boost its cash position further next year by offloading its 24.5% interest in another coal project -Belvedere- to Vale once there’s a resolution to the long-running dispute of how much the asset is worth. | iress |
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