COMPANY RESULTS – AUSTRALIA

Chinese demand has BHP optimistic

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Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-20

BHP produced 68 million tonnes of iron ore in the March quarter, a year-on-year increase of four per cent. Production for the first nine months of 2019-20 rose to a record 205 million tonnes. BHP notes that demand for iron ore in China remains strong, but it has flagged a potential double-digit fall in steel production outside of China in 2020. BHP’s quarterly production report also shows that output at its coal mines in Queensland was 16 per cent lower than in the December quarter and seven per cent lower year-on-year.

CORPORATES
BHP GROUP LIMITED – ASX BHP

NAB reveals $1.4bn writedowns

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Original article by Joyce Moullakis
The Australian – Page: 16 : 21-Apr-20

National Australia Bank has advised that its cash profit for the six months to 31 March will be marred by writedowns totalling $1.14bn. This includes a $188m provision for customer remediation and an impairment charge of $742m associated with its software capitalisation policy. Westpac recently warned that its half-year results will include some $1.43bn worth of write-downs. Meanwhile, analysts expect the major banks’ loan losses and dividend payouts to be a key focus for investors when their interim results are released.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Westpac flags $1.4b first-half hit, expects more to come

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Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 15-Apr-20

Westpac has advised that its financial accounts for the first half of fiscal 2020 will include provisions of $1,030m associated with Austrac’s money-laundering probe. Westpac will also increase its provisions for customer remediation and legal costs by $260m. The financial hit will reduce Westpac’s common equity tier 1 capital ratio by about 30 basis points, to 10.5 per cent. Dermot Ryan of AMP Capital expects Australian banks that report their half-year results in May to slash their dividend payouts.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED

Earnings haven’t been revised low enough

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Original article by William McInnes
The Australian Financial Review – Page: 31 : 8-Apr-20

Earnings per share forecasts for S&P/ASX 200 companies have been reduced by seven per cent since February, due to the impact of the coronavirus pandemic. Macquarie argues that this downgrade is too small, given that Australia’s GDP growth is expected to contract in 2020; the broker adds that the financial market appears to have priced in a much higher decline. Macquarie notes that forecasts are difficult at present as many listed companies have withdrawn their earnings guidance in response to the pandemic.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG

Seven pulls guidance amid advertising uncertainties

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Original article by Max Mason
The Australian Financial Review – Page: 25 : 25-Mar-20

Seven West Media has withdrawn the earnings guidance it issued in February, citing the impact of the coronavirus pandemic. Seven had already downgraded its underlying EBIT guidance for 2019-20 at its half-year results presentation. Seven’s advertising revenue will be hit by the AFL’s decision to suspend its 2020 season until at least the end of May. It is also the official broadcaster of the Tokyo Olympic Games, which were to have been a key source of advertising revenue for the media group in 2020.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM

Earnings shredded as virus fears bite

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Original article by Eli Greenblat, David Rogers
The Australian – Page: 17 & 24 : 26-Feb-20

The coronavirus outbreak has become a major theme for the February reporting season, with a growing number of listed companies issuing earnings downgrades due to the impact of the virus. Treasury Wine Estates, Blackmores and Seek are among the latest companies to issue profit warnings; Treasury has downgraded its earnings expectations for the third time in 2020. Meanwhile, retail group Mosaic Brands had advised that its dividends have been put on hold until the impact of the coronavirus becomes clear.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, BLACKMORES LIMITED – ASX BKL, SEEK LIMITED – ASX SEK, MOSAIC BRANDS LIMITED – ASX MOZ

Westpac warns of hit to bottom line

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Original article by Aleks Vickovich
The Australian Financial Review – Page: 19 : 20-Feb-20

Westpac has used a market update for the first quarter of 2019-20 to advise that its earnings for the financial year will be affected by factors such as the Austrac scandal, storms and the bushfires crisis. Citigroup has responded by downgrading its half-year earnings per share forecast by seven per cent, while its forecast for the full year has been reduced by five per cent. Westpac could face fines of up to $2bn for breaching anti-money laundering laws, while it is the subject of two class actions over the scandal.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

News Corp profit falls as company hit by sluggish Australian economy

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Original article by Zoe Samios
The Sydney Morning Herald – Page: Online : 7-Feb-20

News Corporation has released its financial results for the three months to December, reporting a profit of $US103 million ($153.1 million). This compares to a profit of $US119 million in the prior year period, while revenue was down six per cent to $US2.48 billion, with the Rupert Murdoch-controlled company blaming the torpid Australian economy for the decline. Revenue for news and information services fell $16 million, with the Australian market down nine per cent. Subscriber numbers for Foxtel, which includes streaming services Foxtel Now and Kayo, declined from 3.065 million at the end of the September quarter to 2.95 million at the end of the December quarter.

CORPORATES
NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, FOXTEL NOW, KAYO SPORTS

Drought to hit Newcrest mine

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Original article by Nick Evans
The Australian – Page: 20 : 31-Jan-20

Newcrest Mining has advised that it produced 551,000 ounces of gold in the December quarter, which is eight per cent higher than previously. Its all-in-sustaining cost of production fell by $US40 an ounce to $US859. Newcrest’s flagship Cadia mine in New South Wales produced 239,722 ounces of gold and 26,478 tonnes of copper during the quarter. However, Newcrest has warned that the declining water supply at Cadia means that production cuts may be necessary before the end of the year if the drought persists.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM

Henry sharpens BHP’s iron will

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Original article by Nick Evans
The Australian – Page: 15 & 20 : 22-Jan-20

BHP still expects its 2019-20 iron ore production in the Pilbara to be within the range of 273 to 286 million tonnes, after reporting output of 137 million tonnes for the first half. This suggests that production in the second half could be up to 149 million tonnes. BHP received an average of $US78.30 per tonne for iron ore in the first half, which is 41 per cent higher than previously. Meanwhile, BHP has advised that production at its Mount Arthur coal mine in New South Wales was affected by the drought and bushfires during the first half.

CORPORATES
BHP GROUP LIMITED – ASX BHP