COMPANY RESULTS – AUSTRALIA

ASX ends earnings season on sour note

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Original article by Jens Meyer, Patrick Commins
The Australian Financial Review – Page: 28 : 1-Sep-16

The S&P/ASX 200 index closed 0.8 per cent lower at 5,433.0 on 31 August 2016. Mining and energy stocks were out of favour. Analysts are rather disappointed with the earnings season which ended on 31 August. Goldman Sachs found only five companies whose performance was judged impressive: Fortescue, Seven Group Holdings, GWA Group, JB Hi-Fi and Mayne Pharma.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, GWA GROUP LIMITED – ASX GWA, JB HI-FI LIMITED – ASX JBH, MAYNE PHARMA GROUP LIMITED – ASX MYX, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

SurfStitch out of trough: Sonand

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Original article by Eli Greenblat
The Australian – Page: 23 : 31-Aug-16

SurfStitch reported a loss of more than $A155 million and an underlying EBITDA loss of $A18.8 million for 2015-16. The results of the Australian-listed online retailer included $A99.3 million in impairments to goodwill and aged inventory. Investors abandoned the company, with shares falling $A0.125, or 54.3 per cent, to $A0.105 on 31 August 2016.

CORPORATES
SURFSTITCH GROUP LIMITED – ASX SRF

Injury to ambitions as Slater and Gordon battles for cash

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 : 31-Aug-16

Slater & Gordon lost $A1 billion in 2015-16. The figure includes an impairment on goodwill of $A876 million related to the $A1.3 billion acquisition of the professional services division of Quindell in Great Britain. The Australian-listed personal injury law firm’s normalised profit of $A49.7 million reflected its earnings before tax depreciation, amortisation and movements in work in progress. Slater & Gordon’s problems are quite serious, resulting in negative net operating cash flow of $A104.2 million.

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, QUINDELL PLC

Woolies chief sees green shoots

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Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 26-Aug-16

Australian-listed retailer Woolworths has posted a 2015-16 net loss of $A1.23bn, while revenue was down 1.2 per cent at $A58.08bn. The result was marred by write-downs and impairment charges exceeding $A4bn. CEO Brad Banducci says further reducing grocery prices will continue to be a priority in 2016-17. He adds that there was 0.3 per cent growth in like-for-like store sales during the first eight weeks of the financial year. Shareholders will receive a final dividend of $A0.33 per share.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS GROUP, DAN MURPHY’S, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED

Cashed-up South32 on the hunt

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Original article by Paul Garvey
The Australian – Page: 19 & 26 : 26-Aug-16

Australian-listed South32 has exceeded market forecasts by posting 2015-16 underlying EBITA of $US356m. However, impairment charges resulted in the BHP Billiton spin-off posting a net loss of $US1.6bn (A$2.1bn). South32 boasted net cash of $US312m at the end of the financial year, and CEO Graham Kerr says it will consider a capital return to shareholders if there are no suitable acquisitions. He adds that South32 has pre-emptive rights over Anglo American’s stake in their manganese joint venture.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, SHAW AND PARTNERS LIMITED

Nine banks on local shows to boost ratings

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 26-Aug-16

Nine Entertainment Company has posted a 2015-16 profit of $A324.8m. This compares with a loss of $A592.2m in 2014-15, although the prior result had been marred by write-downs totalling $A732.2 million. The media group’s 2015-16 underlying profit was down 7.1 per cent at $A120.3m and revenue fell by 6.5 per cent to $A1.3bn. CEO Hugh Marks says an increase in premium local content will be a priority for the Nine Network in 2017, after a disappointing ratings performance in 2016. Shareholders will receive a final dividend of $A0.04 per share.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, NIKKO ASSET MANAGEMENT GROUP, WARNER BROS, FACEBOOK INCORPORATED, YOUTUBE INCORPORATED, PROCTER AND GAMBLE COMPANY, SEVEN NETWORK LIMITED, CRICKET AUSTRALIA, NINE LIVE PTY LTD

Profit down but Village Roadshow targets a strong year for cinema

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 26-Aug-16

Australian-listed Village Roadshow has posted a 2015-16 net profit of $A16.6m, which is 58.7 per cent lower than previously, while revenue rose by 6.7 per cent to $A1.1bn. The company’s cinemas division recorded EBITDA of $A73.6 million, an increase of 27.2 per cent, and its theme parks division’s EBITA rose from $A87.5m to $A88m. Shares in Village Roadshow closed 9.3 per cent lower at $A4.77 on 25 August.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, WARNER BROS MOVIE WORLD ENTERPRISES, WET `N’ WILD WATER PARK, CITIGROUP PTY LTD

ERA confident of covering Ranger rehabilitation costs

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Original article by Barry FitzGerald
The Australian – Page: 23 : 25-Aug-16

Energy Resources of Australia has posted a 2016 interim net loss of $A196.5m, down from $A255.3m previously. Revenue fell from $A174.4m to $A154.4m, and ERA boasted total cash resources of $A454m at the end of the half-year. Rehabilitation work at the Ranger uranium mine is expected to cost $A507m, but ERA is optimistic that it will not have to access a $A100m credit facility from Rio Tinto to complete the site remediation work.

CORPORATES
ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, RIO TINTO LIMITED – ASX RIO

BlueScope’s US protectionist profit bonanza

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Original article by Simon Evans
The Australian Financial Review – Page: 13 & 16 : 23-Aug-16

BlueScope Steel has reported a rise of 160 per cent in net profit after tax to $A353.8 million for 2015-16. The Australian-listed steel maker benefited from cost-cutting initiatives, improving conditions in the global steel market and the imposition of anti-dumping duties in the US on steel imports from China. The company’s North Star mill in Ohio, which is the most profitable steel mill in North America, produces two million tonnes of steel annually.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, CARGILL INCORPORATED, ARRIUM LIMITED – ASX ARI

SEEK flags aggressive reinvestment, acquisitions

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Original article by Max Mason
The Australian Financial Review – Page: 13 & 16 : 23-Aug-16

Australian-listed SEEK has posted a 2015-16 net profit of $A357m, which is 27 per cent higher than previously. However, this was boosted by the sale of a 50 per cent stake in IDP Education, and SEEK’s underlying profit rose by three per cent to $A198.1m. EBITDA was five per cent higher than previously at $A366.7, and group revenue increased by 11 per cent to $A950.4m. Shareholders will receive a final dividend of $A0.19 per share.

CORPORATES
SEEK LIMITED – ASX SEK, IDP EDUCATION LIMITED – ASX IEL, HYPERION ASSET MANAGEMENT LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, SIDEKICKER, WORKANA, NIMBLE SOFTWARE SYSTEMS, JORA, JOBADDER, ZHAOPIN LIMITED