CORPORATE PROFITS – AUSTRALIA

Seven earnings plunge but Worner bets on old media comeback

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Original article by Darren Davidson
The Australian – Page: 19 : 3-Aug-16

Shares in Seven West Media and Nine Entertainment Company fell sharply on 2 August 2016, after the former issued a profit warning. Seven has advised that its underlying EBIT for 2016-17 will be 15-20 per cent lower than previously, citing factors such as a slowdown in the advertising market and the rising cost of sports broadcasting rights. Meanwhile, Seven has booked a net profit of $184.3m for the year to 25 June 2016, following a loss of $A1.89bn in 2014-15.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, 7PRODUCTIONS, 7WONDER, 7BEYOND, AUSTRALIAN FOOTBALL LEAGUE

Citi’s Brennan tips resilience in earnings growth

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Original article by David Rogers
The Australian – Page: 34 : 29-Jul-16

The Australian sharemarket currently boasts a forward price-earnings ratio of 16.6 times, but some market watchers expect that the August 2016 reporting season will justify the high earnings multiple. Tony Brennan of Citigroup is upbeat about the reporting season, saying the positive earnings surprises are likely to outweigh the negative surprises. The benchmark S&P/ASX 200 closed at 5556.6 on 27 July, although Brennan expects it to end the year at about 5,500. However, he forecasts that it will rise to 5,750 by mid-2017.

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, APPLE INCORPORATED, FACEBOOK INCORPORATED

Northern Star improves dividend after annual profit climbs 65pc

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 27-Jul-16

Australian-listed Northern Star Resources has reported a 2015-16 net profit of $A151.4m, which is 65 per cent higher than previously. Most analysts had expected the gold producer to book a profit of about $A166m, while its full-year dividend of $A0.07 per share was also lower than some analysts had forecast. Northern Star Resources has also reported that its all-in sustaining cost of production was $US780 an ounce in 2015-16.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, RBC CAPITAL MARKETS

Flight Centre slides as brokers cut forecasts

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 25-May-16

Shares in Flight Centre Travel Group have shed 13.5 per cent in two trading sessions, in the wake of an earnings downgrade. The stock closed five per cent lower at $A31.88 on 24 May 2016. Deutsche Bank has reduced its 12-month share price target by 25 per cent to $A36, while Bell Potter’s target price has been slashed by 12 per cent to $A35.70. Deutsche has also reduced its recommendation on the stock from "buy" to "hold".

CORPORATES
FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, DEUTSCHE BANK AG, BELL POTTER SECURITIES LIMITED, MACQUARIE EQUITIES LIMITED, AUNT BETTY

Good Guys sees earnings surge if IPO proceeds

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 24-May-16

Consumer electronics retailer The Good Guys has appointed three lead managers to handle a potential IPO, which is expected to raise up to $A900m. However, chairman Andrew Muir is retaining options such as a trade sale. The Good Guys boasts 100 stores, and Muir aims to complete the purchase of 56 joint venture stores by the end of 2015-16. The group has forecast pro forma EBITDA of $A85m for the financial year.

CORPORATES
THE GOOD GUYS, THE MUIR ELECTRICAL COMPANY PTY LTD, JJB SPORTS, STEINHOFF INTERNATIONAL HOLDINGS LIMITED, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, BAIN CAPITAL LLC, TPG CAPITAL LP, KKR AND COMPANY LP

Flat outlook for Coca-Cola Amatil puts doubt on growth

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 19-May-16

Shares in Coca-Cola Amatil closed $A0.04 lower at $A8.99 on 18 May 2016, following the group’s annual meeting. CEO Alison Watkins is aiming for earnings per share growth of five per cent in the near-term, but says the bottler may not necessarily meet this target in 2016. However, she expects the group to achieve earnings growth in the year to December. Analysts have forecast underlying profit growth of 3.6 per cent and growth in sales of 2.7 per cent for 2016.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, ARNHEM INVESTMENT MANAGEMENT PTY LTD, PEPSICO AUSTRALIA PTY LTD, SCHWEPPES AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Cost focus puts BHP on track to raise dividend

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 18-May-16

Credit Suisse has upgraded its underlying earnings forecast for BHP Billiton in 2015-16 by 3.5 per cent to $A12bn, in response to the resources giant’s revised production costs for commodities such as iron ore and coal. Credit Suisse also suggests that BHP could lift its 2015-16 dividend by 10.8 per cent to $A0.25 per share. The firm has lifted its share price target for BHP stock from $A20 to $A21.5.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Orica shares dive 12pc as shareholders blast poor result

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Original article by Jared Lynch
The Australian Financial Review – Page: 1 & 11 : 10-May-16

Mining services group Orica has posted a 2015-16 interim net profit of $A149m, which is 33 per cent lower than previously. The explosives manufacturer’s revenue was 22 per cent lower at $A2.6bn, and its half-year dividend has been reduced from $A0.40 per share to just $A0.205 following a decision to abandon its progressive dividend policy. CEO Alberto Calderon has warned that a significant improvement in commodity markets is unlikely for some time.

CORPORATES
ORICA LIMITED – ASX ORI, STANDARD AND POOR’S CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN TAXATION OFFICE, MORGANS FINANCIAL LIMITED

ANZ dividend cut puts pressure on rivals to follow suit

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 4-May-16

The ANZ Bank reported a 2015-16 interim cash profit of $A2.8bn on 3 May 2016, which was slightly below market expectations. The banking major reduced its half-year dividend from $A0.86 per share to $A0.80, prompting speculation that National Australia Bank will do so as well when its interim results are released on 5 May. Omkar Joshi of Watermark Funds Management has welcomed ANZ’s decision to reduce its dividend payout ratio, while Katana Asset Management’s Romano Sala Tenna says the other major banks should follow its example.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, KATANA ASSET MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD, INVESTORS MUTUAL LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION

Westpac misses the profit mark

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Original article by Michael Bennet
The Australian – Page: 19 & 23 : 3-May-16

Shares in Australia’s major banks were sold down on 2 May 2016, after Westpac posted lower-than-expected cash earnings of $A3.9bn for the first half of 2015-16. This was three per cent higher than previously, but impairment charges rose by 96 per cent to $A667m and the bank’s return on equity fell to 14.2 per cent. CEO Brian Hartzer says Westpac will cease offering financial products that do not generate a sufficient return. Shareholders will receive an unchanged interim dividend of $A0.94 per share.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ARRIUM LIMITED – ASX ARI, SLATER AND GORDON LIMITED – ASX SGH, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD