CORPORATE PROFITS – AUSTRALIA

Earnings season shows bourse’s pillars are solid

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Original article by David Rogers
The Australian – Page: 31 : 16-Feb-17

Australia’s benchmark S&P/ASX 200 closed above 5,800 points on 15 February 2017, bolstered by strong earnings results by a number of blue-chip stocks. The local bourse is now underperforming the US market by less than two per cent, recovering from a disappointing performance in January. The S&P/ASX 200 could test the 6,000-point level if the reporting season continues to deliver good results, and Richard Copple­son of Bell Potter still expects it to reach 6,300 points by the end of 2017.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CSL LIMITED – ASX CSL, WESFARMERS LIMITED – ASX WES, BORAL LIMITED – ASX BLD, COMPUTERSHARE LIMITED – ASX CPU, TRANSURBAN GROUP LIMITED – ASX TCL, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, SUNCORP GROUP LIMITED – ASX SUN, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, CIMIC GROUP LIMITED – ASX CIM, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, PRIMARY HEALTH CARE LIMITED – ASX PRY, SEVEN WEST MEDIA LIMITED – ASX SWM, BRAMBLES LIMITED – ASX BXB, COLES SUPERMARKETS AUSTRALIA PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Rio Tinto hit with more delay for Indo copper

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 6-Feb-17

Freeport-McMoran has advised that Rio Tinto’s share of production from the Grasberg copper and gold mine is unlikely to increase until at least 2023. Rio was slated to receive 40 per cent of the Indonesian mine’s output from 2021 under an agreement between the two companies, but Freeport has attributed the expected delay to factors such as a series of interruptions to production at the mine in the last several years. Meanwhile, Rio is forecast to post EBITDA of $US13bn and revenue of $US34.3bn for calendar 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, BLOOMBERG LP

Hopes for investor pay dirt look grim

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

The rebound in the price of iron ore and coking coal will boost the profits of mining companies in fiscal 2017. Anna Kassianos of Platypus Asset Management says investors should not expect a significant rise in dividends, arguing that some of the increased earnings are likely to be retained to invest in growth strategies and maintenance work that was deferred when commodities prices retreated. Bloomberg expects BHP Billiton, Fortescue Metals Group and South32 to be among the miners that increase their dividends.

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, BLOOMBERG LP, ARGONAUT SECURITIES PTY LTD, NATIONAL PARTY OF AUSTRALIA

ASIC to scrutinise Bellamy’s trading

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Original article by Damon Kitney, Eli Greenblat
The Australian – Page: 22 : 6-Dec-16

The Australian Securities & Investments Commission will undertake an informal review of trading in the shares of Bellamy’s Australia prior to the release of an earnings update on 2 December 2016. The infant formula group’s shares fell by 43.52 per cent in response to the bearish guidance, and the stock shed another 4.23 per cent on 5 December. Bellamy’s had left its earnings guidance unchanged at the AGM in mid-October.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, KATHMANDU HOLDINGS LIMITED – ASX KMD, BLACK PRINCE PRIVATE FOUNDATIONRST, ELLERSTON CAPITAL PTY LTD

Roy Morgan Research – 75 Years collecting, analysing and interpreting accurate information!

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Dec-16

Roy Morgan Research Ltd Directors are pleased to report the company has returned to profitability during 2016, both in Australia and overseas, and the start of 2017 is continuing in the same way. Shareholders have been advised that the consolidated profit for the financial year to June 30, 2016 was $3,045,000 compared with a loss for the year ended June 30, 2015 of $2,337,000 and a loss of $7,858,000 for 2014. EBITDA (Earnings before interest, income tax, depreciation, and amortisation) for the financial year to June 30, 2016 was $3,946,000 compared with a negative EBITDA of $1,784,000 for 2015 and a negative EBITDA of $6,644,000 for 2014. Directors expect Roy Morgan Research Ltd profit for the full year to June 30, 2017 to be near $5.5 million with EBITDA in excess of $6 million.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Windfall for mining sector could hit $20b

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Original article by Jens Meyer
The Australian Financial Review – Page: 25 : 1-Dec-16

Macquarie Group estimates that financial market analysts will need to increase their 2018 earnings forecasts for resources groups by around 200 per cent if commodity prices remain at around current levels. Macquarie’s Jason Todd notes that this equates to a profit boost of about $A20bn for the sector. He argues that many analysts have factored the rise in commodity prices into their forecasts for 2016-17, but many have neglected to upgrade their earnings forecasts beyond the current financial year.

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

Windfall for mining sector could hit $20b

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Original article by Jens Meyer
The Australian Financial Review – Page: 25 : 1-Dec-16

Macquarie Group estimates that financial market analysts will need to increase their 2018 earnings forecasts for resources groups by around 200 per cent if commodity prices remain at around current levels. Macquarie’s Jason Todd notes that this equates to a profit boost of about $A20bn for the sector. He argues that many analysts have factored the rise in commodity prices into their forecasts for 2016-17, but many have neglected to upgrade their earnings forecasts beyond the current financial year.

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

Iron ore price hits Hancock profits

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Original article by Paul Garvey
The Australian – Page: 24 : 11-Nov-16

Hancock Prospecting has revealed that its revenue fell from more than $A2bn in 2014-15 to $A1.72bn in 2015-16, while its net profit from operations was 33 per cent lower at $A443m. Hancock Prospecting has attributed the revenue and earnings deficit to a fall in the iron ore prices during the financial year. The group also notes that construction of the Roy Hill iron project resulted in its total debt rising to $A8.9bn.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, RIO TINTO LIMITED – ASX RIO, HOPE DOWNS IRON ORE PTY LTD

Banks stare at low growth as pressures rise

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 19 : 9-Nov-16

The combined cash earnings of Australia’s four major banks fell by 2.5 per cent in 2015-6, to $A29.6bn. They recorded net interest income growth of 5.5 per cent, to $A60.3bn, but non-interest income was down 3.1 per cent at $A23.5bn. Michael Rowland of KPMG says the banks are facing a number of headwinds, including the prospect of lower growth in revenue and return on equity, growing competition and an increase in regulatory costs.

CORPORATES
KPMG AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, PM CAPITAL LIMITED, ERNST AND YOUNG

Westpac returns hit by need to build capital

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Original article by James Eyers
The Australian Financial Review – Page: 11 & 15 : 8-Nov-16

Westpac has posted a 2015-16 cash profit of $A7.8bn. Its return on equity fell by 1.85 per cent to 14 per cent in the year to 30 September 2016, and its ROE target has been scaled back from 15 per cent to 13-14 per cent due to factors such as new capital requirements for the banking sector. PwC estimates that the combined ROE of the four major banks fell by 127 basis points to 13.75 per cent in 2015-16. Meanwhile, Westpac will seek to reduce its cost-to-income ratio from 42 per cent at present to less than 40 per cent

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, CITIGROUP PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, KPMG AUSTRALIA PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ