COMPANY RESULTS – AUSTRALIA

More pain to come for Telstra investors

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 22-Jun-18

Telstra shares fell to a seven-year low on 21 June, in response to its restructuring proposal and 2018-19 earnings guidance that was below market expectations. Citigroup is bearish about the EBITDA and earnings outlook for Telstra’s mobile division over the next four years, and the firm has downgraded its earnings per share forecasts. Citigroup and CLSA also expect Telstra to reduce its dividend payout in coming years.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, CITIGROUP PTY LTD, CLSA AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, VODAFONE HUTCHISON AUSTRALIA PTY LTD

Fears of big job losses from inquiry fallout

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Original article by Michael Roddan
The Australian – Page: 20 : 15-May-18

Automation has already put around 50,000 financial services jobs at risk, and job losses in the sector may increase in the wake of the banking royal commission. Sally Auld of JPMorgan says the loss of jobs as a result of the inquiry could be greater than those shed during the last financial crisis. Tommy Wu of IBISWorld notes that the banking sector’s revenue has fallen by over $A10 billion in the last five years, and it could fall even further as a result of the royal commission.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, JP MORGAN AUSTRALIA LIMITED, IBISWORLD PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS HOLDINGS PTY LTD, RICE WARNER ACTUARIES PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG

Westpac anger at royal commission tactics

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 8-May-18

Westpac’s shares rose $A0.24 to $A29.34 on 7 May after the bank reported an interim cash profit of $A4.25 billion, up six per cent. In releasing its latest results, Westpac took the opportunity to criticise the banking royal commission’s release of documents that had been critical of its lending standards. CEO Brian Hartzer also took the opportunity to restate the bank’s commitment to its BT Financial Group wealth business, despite other banks having indicated their intention to exit the wealth management sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BT FINANCIAL GROUP PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Hywood signals Fairfax open to merger with free-to-air television network

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Original article by Dana McCauley
The Australian – Page: 19 : 3-May-18

Fairfax Media CEO Greg Hywood says the company is well-placed to capitalise on industry consolidation in the wake of cross-media ownership reforms. He has also argued that mergers between print and broadcasting companies are possible, although all interested parties would have to benefit from any such deal. Meanwhile, Fairfax has advised that group revenue fell by one per cent during the first 17 weeks of the second half of 2017-18; its Australian Metro Media division’s revenue was about two per cent lower than the same period in 2016-17.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN METRO MEDIA, AUSTRALIAN COMMUNITY MEDIA, STUFF LIMITED, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM

Google revenue hits $3b, loss for Facebook

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Original article by Max Mason
The Australian Financial Review – Page: 3 : 1-May-18

Google Australia’s accounts for 2017 reveal that it booked gross revenue of $A3.06 billion. Net revenue, on which Google is taxed in Australia, totalled $A1.022 billion. Google Australia paid tax of $A37.2 million in 2017 and it made a profit of $A125.1 million. Meanwhile, Facebook Australia boasted revenue of $A476.8 million in 2017, up from $A326.9 million in 2016. It reported a $A9.6 million loss as a result of a tax charge.

CORPORATES
GOOGLE AUSTRALIA PTY LTD, FACEBOOK AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Wesfarmers CEO resists M&A pressure

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 22 : 27-Apr-18

Wesfarmers CEO Rob Scott says he does not intend to make acquisitions just for the sake of it once the conglomerate has completed its demerger of Coles. Speaking on the release of Wesfarmers’ retail sales figures for the March quarter, he rejected rumours that it is interested in Fletcher Building. Outgoing Coles managing director John Durkan rejected claims that it had been increasing prices in an attempt to boost margins, noting that it cut the price of 500 products during the March quarter.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, FLETCHER BUILDING LIMITED – ASX FBU, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, JP MORGAN AUSTRALIA LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Newcrest cuts gold forecast by 10pc

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Original article by Paul Garvey
The Australian – Page: 20 : 27-Apr-18

Newcrest Mining produced 576,000 ounces of gold and 19,000 ­tonnes of copper during the March quarter, with output falling by six per cent and 15.5 per cent respectively. Newcrest has downgraded its production guidance for 2017-18, with gold output expected to be within the range of 2.25 million to 2.35 million ounces. The downgrade follows the collapse of a tailings wall dam at its Cadia mine and a sharp fall in production at the Telfer mine during the quarter. Full-year copper output is now expected to be 70,000 to 75,000 tonnes.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, MACQUARIE GROUP LIMITED – ASX MQG

BHP trims iron ore guidance due to maintenance issues

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Original article by James Thomson
The Australian Financial Review – Page: 17 : 20-Apr-18

BHP Billiton’s iron ore production in the Pilbara totalled 57.6 million tonnes in the March quarter, which is eight per cent higher than the previous corresponding period. However, the resources group has advised that full-year output for 2017-18 will be within the range of 272 million to 274 million tonnes, due to the need for maintenance work on equipment that is used to unload rail cars. BHP had previously forecast full-year output of 275 million to 280 million tonnes. BHP has also indicated that it hopes to secure deals to sell its US shale assets in the second half of 2018.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED

Woodside cool on play for rival Santos

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 16 : 19-Apr-18

Woodside Petroleum has advised that its sales rose by 18 per cent to $US1.169bn in the March 2018 quarter. The oil and gas group’s production rose from 21.4 million barrels of oil equivalent in the March 2017 quarter to 22.2 million boe, with the result being boosted by the contribution from its 13 per cent stake in the Wheatstone LNG project. CEO Peter Coleman has downplayed speculation that Woodside could bid for Santos, stressing that the Browse and Scarborough gas fields are its priorities.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, CHEVRON CORPORATION, HARBOUR ENERGY LIMITED, JP MORGAN AUSTRALIA LIMITED

Trains give Rio’s iron ore unit a push

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 19-Apr-18

Rio Tinto has advised that its Pilbara iron ore shipments totalled 80.3 million tonnes in the March 2018 quarter, which is 11 per cent lower than the December quarter but five per cent higher year-on-year. The resources group still expects shipments for the full year to be within the range of 330 million and 340 million tonnes. Rio Tinto has also advised that it expects the AutoHaul autonomous train project to be completed in 2018, and says the proportion of trains that are operating in autonomous mode rose from 60 per cent to 65 per during the quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ROYAL BANK OF CANADA, QUEENSLAND ALUMINA LIMITED, RUSAL