BUSINESS FORECASTING – AUSTRALIA

Map out roadwork: Transurban

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Original article by Damon Kitney, Mitchell Neems
The Australian – Page: 23 : 6-Aug-14

Toll roads operator Transurban has announced a 2013-14 full-year net profit increase of 44.5% to $A252.2m. The 12-month distribution is $A0.35, and a forecast of $A0.39 for the 2014-15 payout has also been confirmed. On 5 August 2014 the stock closed 0.9% lower at $A7.58. CEO Scott Charlton said the company applauded pledges by the State Governments of New South Wales, Victoria and Queensland to improve their roads infrastructure, but it was also calling for more co-ordination that involved the Federal Government as well

CORPORATES
TRANSURBAN GROUP LIMITED – ASX TCL, TRANSURBAN CITY LINK LIMITED, WESTCONNEX, HILLS MOTORWAY GROUP LIMITED, QUEENSLAND MOTORWAYS LIMITED, UBS HOLDINGS PTY LTD, BANK OF AMERICA CORPORATION, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE EQUITIES LIMITED, MACQUARIE BANK LIMITED – ASX MBL

Start-ups key as change batters the big four

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Original article by Damon Kitney
The Australian – Page: 15 : 4-Aug-14

Consultants at Ernst & Young and KPMG warn that large companies must seek strategic alliances with small start-ups in order to safeguard against digital disruption. A major sector in need of such an approach is that of banking in Australia, and the four main lenders are already facing competition by online payments businesses such as PayPal. However Brian Hartzer, CEO Australian financial services at Westpac Banking, argues the banks can themselves behave like start-ups. Kelly Bayer Rosmarin, group executive institutional banking and markets at Commonwealth Bank of Australia, also says they have an advantage in the shape of large stores of customer data

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PAYPAL INCORPORATED, AMAZON.COM INCORPORATED, KPMG, ERNST AND YOUNG

Eddington cheers a ‘new wave’ from Japan

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Original article by Rick Wallace, Rowan Callick
The Australian – Page: 19 : 31-Jul-14

Prominent Australian businessman Sir Rod Eddington predicts increased investment by Japanese entities, including major trading houses Mitsui, Sumitomo and Mitsubishi, under a new free-trade agreement. He also notes that the services sector will be a major beneficiary in terms of exports to Japan, apart from the more obvious agricultural industry. However Wesfarmers non-executive director and Strategy& chair Vanessa Wallace notes that Australian businesses currently account for under 1% of all foreign companies with operations in Japan

CORPORATES
PRICEWATERHOUSECOOPERS, WESFARMERS LIMITED – ASX WES, COOGEE CHEMICALS PTY LTD, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED, SUMITOMO CORPORATION, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Navitas marked down after uni setback

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Original article by Julie Hare
The Australian – Page: 19 : 29-Jul-14

Navitas has announced a 2013-14 full-year net profit drop of 31% to $A51.6m, on revenue of $A878.2m. The earnings per share declined 31% as well, to $A0.137. On 28 July 2014 the stock lost $A0.14 to close at $A4.98. In early July it had fallen steeply from $A7.75 to $A4.68, on news the higher education enrolment services provider had lost its contract with Macquarie University. Navitas CEO Rod Jones says the company predicts improve trading conditions once the Australian Government’s full deregulation of university course fees becomes law

CORPORATES
NAVITAS LIMITED – ASX NVT, MACQUARIE UNIVERSITY, DEUTSCHE BANK AG, STANDARD AND POOR’S ASX 100 INDEX, EDITH COWAN UNIVERSITY, MASSACHUSETTS COLLEGE OF LIBERAL ARTS, CURTIN UNIVERSITY OF TECHNOLOGY, SOUTH AUSTRALIAN INSTITUTE OF BUSINESS AND TECHNOLOGY PTY LTD, AUSTRALIAN COLLEGE OF APPLIED PSYCHOLOGY PTY LTD, SAE INSTITUTE PTY LTD

Iron ore set to deliver profits before earnings’ slide bites

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 28-Jul-14

Higher export volumes and cost-cutting will ensure that Australian-listed iron ore producers deliver good full-year results in the August 2014 reporting season. However, the sector faces challenges in the 2014-15 fiscal year, including expectations of continued weakness in the iron ore price. This will offset further growth in export volumes, with companies whose sole focus is iron ore likely to be hardest hit. Stuart Howe of Bell Potter notes that iron ore producers may continue to pay strong dividends

CORPORATES
BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, ANGLO AMERICAN PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, FORMOSA

IAG lifts full-year profit margin outlook

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 25-Jul-14

Insurance Australia Group (IAG) has upgraded its full-year profit margin forecast for 2013-14 to between 18 per cent and 18.3 per cent, from the previously announced range of 14.5 per cent to 16.5 per cent. The new estimate takes the group’s profit margin to its highest levels since the company listed on the sharemarket in 2000. CEO Mike Wilkins said IAG benefited from warm weather and a lack of claims

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG|ASX LIMITED – ASX ASX|NRMA INSURANCE LIMITED|CGU INSURANCE AUSTRALIA LIMITED|COMMONWEALTH BANK OF AUSTRALIA – ASX CBA|BKI INVESTMENT COMPANY LIMITED – ASX BKI|TYNDALL INVESTMENT MANAGEMENT LIMITED|GOLDMAN SACHS AUSTRALIA PTY LTD|WESFARMERS LIMITED – ASX WES

ASX faces income loss after fee cuts

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 25-Jul-14

Analysts do not expect a move by ASX Limited to cut some fees to have much long-term impact on the stock market operator’s earnings. The ASX will reduce fees on over-the-counter derivatives and interest rate futures in October 2014. The changes include a shift from flat rate fees to a system of volume-based fees for derivatives clients. Ryan Fisher of Goldman Sachs expects the new fee structure to enhance the ASX’s competitiveness

CORPORATES
ASX LIMITED – ASX ASX|GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD|LCH.CLEARNET SA|CHI-X AUSTRALIA PTY LTD|COUNCIL OF FINANCIAL REGULATORS

Challenge for Helloworld chief

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Original article by Lisa Allen
The Australian – Page: 21 : 24-Jul-14

Helloworld has been named "Best Travel Agency Group" by the Australian Federation of Travel Agents. However its rebranding of the Harvey World Travel, Travelscene, Jetset Travel and Travelworld networks it owns has meant the likely loss of 100-plus individual agencies unhappy at the change. This has forced Helloworld to warn of a 2014-15 EBITDAI decline, by as much as $A10m. Recently appointed CEO Elizabeth Gaines, who sits on the board of Fortescue Metals Group as well, is confident the share price will recover after falling to $A0.26

CORPORATES
HELLOWORLD LIMITED – ASX HLO|FORTESCUE METALS GROUP LIMITED – ASX FMG|THE AUSTRALIAN FEDERATION OF TRAVEL AGENTS LIMITED

BHP surge sets stage for buyback

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 & 24 : 24-Jul-14

BHP Billiton expects its iron ore output for 2014-15 to top 245 million tonnes, after production in the Pilbara region of Western Australia for 2013-14 rose to about 225 million tonnes. Most analysts had forecast that output for 2014-15 will be around 230 million tonnes. Glyn Lawcock of UBS says the upbeat production forecast could prompt BHP to reveal a share buyback program when its 2013-14 financial results are released in August 2014

CORPORATES
BHP BILLITON LIMITED – ASX BHP|UBS HOLDINGS PTY LTD|RIO TINTO LIMITED – ASX RIO|FORTESCUE METALS GROUP LIMITED – ASX FMG|VALE SA|DEUTSCHE BANK AG|PENGANA CAPITAL LIMITED

Top firms see better times on the horizon

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Original article by Chris Merritt
The Australian – Page: 27-28 : 18-Jul-14

Commonwealth Bank of Australia and Beaton Research + Consulting have issued their latest survey of business confidence among the leading commercial law firms. It covers the second quarter of calendar 2014, and 31 firms with total revenue of $A3.6bn per annum. Among the findings are that the net ratio of firms seeing conditions as negative has fallen to 23% from 28%, but that among top-tier providers the drop has been from 50% to just 14%. Out of 15 practice areas looked at by the research, an improvement is forecast for 13

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BEATON RESEARCH AND CONSULTING PTY LTD