CORPORATE PROFITS – AUSTRALIA

NBN rival TPG Telecom not backing down

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Original article by David Ramli
The Australian Financial Review – Page: 13 & 18 : 23-Sep-15

Australian-listed TPG Telecom has posted 2014-15 EBITDA of $A484.5m, which is 33 per cent higher than usual. Revenue rose by 31 per cent in the year to 31 July 2015, to $A1.27bn, while net profit also grew by 31 per cent. Meanwhile, executive chairman David Teoh says the group will keep rolling out its fibre-to-the-basement network to apartment buildings, and it may market the service under its TPG and iiNet brands. TPG intends to discontinue some of its smaller ISP brands.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, IINET LIMITED – ASX IIN, NBN CO LIMITED, INTERNODE SYSTEMS PTY LTD, WESTNET PTY LTD, NETSPACE, ADAM INTERNET PTY LTD, TRANSACT (AUSTRALIA) PTY LTD, MACQUARIE WEALTH MANAGEMENT, NEXTGEN PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, M2 GROUP LIMITED – ASX MTU, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL

Macquarie poised for record $2b annual profit

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 17 : 15-Sep-15

Australian-listed Macquarie Group has advised that its 2015-16 interim profit will be 40 per cent higher than the $A678m result for the previous corresponding period. This suggests that Macquarie’s profit for the half-year to 30 September 2015 will be around $A949m. Macquarie has indicated that its profit for the second half will be similar to the first half, which means its full-year result could be around $A1.9bn. Meanwhile, the group has made a binding offer to acquire the Esanda dealer finance business from the ANZ Bank.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE ASSET MANAGEMENT, MACQUARIE SECURITIES PTY LTD, SHAW AND PARTNERS LIMITED, CLSA CAPITAL PARTNERS, WHITE FUNDS MANAGEMENT PTY LTD, TRANSGRID, LONDON CITY AIRPORT

Falling profits hit economy

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 : 1-Sep-15

Company profits fell 1.9 per cent in the three months to June 2015, the fifth straight quarter of profit declines, prompting analysts to conclude the Australian economy is shrinking for the first time since the election of the Abbott Government. Despite fears new concerns about the economy could weigh heavily on investor sentiment, Treasurer Joe Hockey insisted there were positive signs and that the prospect of tax reform and the China free-trade agreement would lift spirits.

CORPORATES
DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, BLOOMBERG FINANCIAL SERVICES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX

Blackmores gives six weeks’ pay to staff as share of profit bonanza

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 26-Aug-15

Blackmores has reported a rise of 83 per cent in net profit after tax to $A46.6 million for 2014-15. Total sales increased 36 per cent to $A471.6 million. Commenting on the results, Blackmores CEO Christine Holgate said on 25 August 2015 that staff will receive an extra six weeks’ pay as part of a profit-sharing scheme. The final dividend was raised by 63 per cent to $A1.35 a share.

CORPORATES
BLACKMORES LIMITED – ASX BKL, BIOCEUTICALS PTY LTD, VITACO HEALTH LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, ASX LIMITED – ASX ASX, NUTRA-LIFE HEALTH AND FITNESS AUSTRALIA PTY LTD, HEALTHERIES OF NEW ZEALAND LIMITED, MUSASHI PTY LTD

Fortescue slumps but talks up asset values

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 25-Aug-15

Fortescue CFO Stephen Pearce says the company’s "world class" mining and port and rail assets in the Pilbara region of Western Australia are worth more than the $A20 billion it cost to develop them. Fortescue CEO Nev Porter put the 14.6 per cent fall in Fortescue’s share price down to a "flighty" market. UBS calculates the net valuation of the assets at $A12 billion.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, HEBEL, TEWOO GROUP

Qantas’ great recovery due to cost falls

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Original article by Michael Smith
The Australian Financial Review – Page: 28 : 21-Aug-15

The key to the turnaround in the fortunes of Qantas is due largely to external factors, including lower fuel prices and the removal of the carbon tax, as well as heavy cost-cutting. CEO Alan Joyce’s next challenge is finding operational growth, though the decision to order eight new Boeing Dreamliners was an important symbolic gesture signifying confidence in the future.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, BOEING COMPANY, ASX LIMITED – ASX ASX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Rio capex cut to shore up pay-outs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1&12 : 7-Aug-15

Rio Tinto has reported a 43 per cent decline in underlying earnings to $US2.9 billion for the first half of 2015, compared with $US5.1 billion in the previous corresponding period. Commenting on the results, CEO Sam Walsh said that Rio will reduce capital investment by at least $US2.5 billion over two years. He assured investors that the cuts will not affect the company’s growth prospects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, UBS AG, DEUTSCHE BANK AG, X2 RESOURCES PARTNERS LP

Harvey Norman predicted to be solid

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 31 : 6-Aug-15

UBS has a "buy" recommendation on a number of retail stocks that benefit from a strong housing market. The firm is particularly upbeat about the outlook for Harvey Norman in the August 2015 reporting season, although it also likes JB Hi-Fi, Breville Group and Adairs. However, UBS is bearish about grocery retailers. Credit Suisse also favours Harvey Norman, while JB Hi-Fi is the top pick for Macquarie Group.

CORPORATES
UBS HOLDINGS PTY LTD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, BREVILLE GROUP LIMITED – ASX BRG, ADAIRS LIMITED – ASX ADH, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, METCASH LIMITED – ASX MTS, MYER HOLDINGS LIMITED – ASX MYR, SUPER RETAIL GROUP LIMITED – ASX SUL

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC