CORPORATE PROFITS – AUSTRALIA

Big four rank high for profitability: BIS

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 29-Jun-15

The Bank for International Settlements’ annual report shows that Australia’s four major banks outperformed their peers in developed countries in terms of profitability in 2014. The banks’ pre-tax profits were 1.28 per cent of their assets during the calendar year, ahead of the US and Canada. TS Lim of Bell Potter notes that Australia’s comparatively high interest rates contributed to the profitability of local banks.

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS, BELL POTTER SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Share price slumps after profit warning

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 15 : 24-Jun-15

Australian-listed Flight Centre Travel Group has advised that its 2014-15 underlying profit before tax will be within the range of $A355m to $A365m. Its previous guidance was for earnings of $A360m to $A390m, with the downgrade attributed to factors such as competition from online travel groups and slowing growth in Australia’s domestic travel market. Flight Centre shares closed nearly 14 per cent lower at $A37.51 on 23 June 2015.

CORPORATES
FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, AIRBNB AUSTRALIA PTY LTD, BOOKING.COM BV, PRICELINE.COM, GAINSDALE PTY LTD, MACQUARIE EQUITIES LIMITED

Metcash is crunched in retail wars

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

Australian-listed Metcash has indicated that its financial accounts for 2014-15 will include asset write-downs totalling $A640m. The grocery group has also advised that dividends will be put on hold for 18 months. The revelations prompted a sharp fall in Metcash’s share price, which finished $A0.245 lower at $A1.14 on 4 June 2015. Metcash expects its full-year underlying EBIT to be within its forecast range of $A315m to $A330m.

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, McPHERSON’S LIMITED – ASX MCP

Ainsworth looks to lift its international game

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Original article by Perry Williams
The Australian Financial Review – Page: 16 : 5-Jun-15

Ainsworth Game Technology has advised that its 2014-15 after-tax net profit will be line with the previous financial year. The listed gaming machine maker expects revenue to be two per cent lower at about $A240m, citing disappointing sales in Australia during the second half. CEO Danny Gladstone says the group will focus on expanding its international business, noting that there is limited opportunity for growth in the Australian market.

CORPORATES
AINSWORTH GAME TECHNOLOGY LIMITED – ASX AGI, ARISTOCRAT LEISURE LIMITED – ASX ALL

Hepatitis A recall takes bite from Patties profit

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Original article by Jared Lynch
The Australian Financial Review – Page: 23 : 4-Jun-15

Patties Foods has advised that it is likely to post a 2014-15 net profit of $A15m, down from $A16.7m previously. Earnings for the current year are expected to be reduced by about $A1.5m due to a frozen berries product recall arising from a hepatitis A scare. CEO Steven Chaur says the group now subjects its berries to a stringent testing regime.

CORPORATES
PATTIES FOODS LIMITED – ASX PFL, NANNA’S, CREATIVE GOURMET, FOUR ‘N TWENTY PIES

Virtus shares drop 20pc on profit downgrade

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 3-Jun-15

Australian-listed IVF group Virtus Health has slightly downgraded its net profit forecast for 2014-15. The group indicated in February 2015 that its market share was 45.6 per cent, but it advised on 2 June that bulk-billing providers in New South Wales have eroded its market share. Virtus shares closed 19.92 per cent lower at $A6.11.

CORPORATES
VIRTUS HEALTH LIMITED – ASX VRT, PRIMARY HEALTH CARE LIMITED – ASX PRY, QUADRANT PRIVATE EQUITY PTY LTD

Low rates, yields to hit Suncorp, IAG

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 26-May-15

The earnings of Australian-listed insurance companies are likely to be affected by low interest rates and bond yields. Investment income accounts for around 40 per cent of QBE Insurance Group’s profits, compared with 25 per cent in the case of Insurance Australia Group (IAG) and Suncorp. IAG CEO Mike Wilkins says most of the company’s insurance book comprises "short tail risk".

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, CREDIT SUISSE (AUSTRALIA) LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Hardie cash splash ignores compo deal

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Original article by Tim Binsted
The Australian Financial Review – Page: 15 : 22-May-15

James Hardie Industries has posted a $US221.4m profit for the year to 31 March 2015, which is 12 per cent higher than previously. The building materials group will pay out a total of $US120.3m in dividends for the second half of the financial year, plus a special dividend of $US98m. Payments to the Asbestos Injuries Compensation Fund for fiscal 2015 totalled $US113m. James Hardie shares closed 11.6 per cent higher at $A16.99 on 21 May 2015.

CORPORATES
JAMES HARDIE INDUSTRIES PLC – ASX JHX, ASBESTOS INJURIES COMPENSATION FUND LIMITED, NEW SOUTH WALES. THE TREASURY

AusNet full-year profit dives 87pc on hefty tax charges

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 15-May-15

Australian-listed AusNet Services has posted a 2014-15 after-tax net profit of $A22.6m, which is 87 per cent lower than previously. The result was marred by a payment to the Australian Taxation Office to resolve a tax dispute. Revenue of $A1.83bn rose by 1.9 per cent and EBITDA was 2.9 per cent higher at $A1.05bn. Investors will receive a final distribution of $A0.418 per security.

CORPORATES
AUSNET SERVICES HOLDINGS PTY LTD – ASX ANV, AUSTRALIAN TAXATION OFFICE, CHINA STATE GRID, SINGAPORE POWER LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Optus gears up for mobile war against Telstra

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Original article by David Ramli
The Australian Financial Review – Page: 15 & 20 : 15-May-15

Singtel Optus has posted a net profit of $A841m for the year to 31 March, which is 0.7 per cent higher than previously. The telco’s revenue increased by 3.8 per cent to $A8.79bn. Meanwhile, Optus will significantly increase investment in its telecommunications infrastructure. Optus intends to upgrade its mobile network in a bid to take market share from Telstra, while it will also upgrade its fixed-line network amid strong competition from TPG Telecom and iiNet.

CORPORATES
SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, TELSTRA CORPORATION LIMITED – ASX TLS, IINET LIMITED – ASX IIN, TPG TELECOM LIMITED – ASX TPM, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NETFLIX INCORPORATED, NOMURA SECURITIES COMPANY LIMITED, PRESTO ENTERTAINMENT PTY LTD