CORPORATE PROFITS – AUSTRALIA

Shocks likely as weaker $A hits home

roymorgansocial Leave a comment

Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 20 : 10-Feb-15

Shane Lee of CIMB notes that consensus forecasts for earnings per share in the February 2015 reporting season have not been unduly affected by the sharp fall in the value of the Australian dollar. CSL, Boral and Newcrest Mining are among the stocks that could potentially have benefited from the lower currency in the first half of 2014-15. Lee notes that Boral will have greater downside risk in fiscal 2016, when less of its foreign exposure will be hedged

CORPORATES
CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CSL LIMITED – ASX CSL, BORAL LIMITED – ASX BLD, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, COCHLEAR LIMITED – ASX COH, PERSEUS MINING LIMITED – ASX PRU, SONIC HEALTHCARE LIMITED – ASX SHL, TRANSFIELD SERVICES LIMITED – ASX TSE, AMCOR LIMITED – ASX AMC, ALUMINA LIMITED – ASX AWC, WHITEHAVEN COAL LIMITED – ASX WHC, OCEANAGOLD CORPORATION – ASX OGC, RIO TINTO LIMITED – ASX RIO, ILUKA RESOURCES LIMITED – ASX ILU, ATLAS IRON LIMITED – ASX AGO, SANDFIRE RESOURCES NL – ASX SFR, MOUNT GIBSON IRON LIMITED – ASX MGX

Ansell profit jumps 33.7pc after two major acquisitions

roymorgansocial Leave a comment

Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 10-Feb-15

Ansell has reported a 33.7 per cent rise in net profit to $A87.7 million for the second half of 2014. The Australian-listed rubber glove and condom maker’s revenue increased by 20 per cent to $US847.3 million. CEO Magnus Nicolin said on 9 February 2015 that the company benefited from two major deals completed in 2014. New acquisitions will be considered

CORPORATES
ANSELL LIMITED – ASX ANN, BARRIERSAFE SOLUTIONS INTERNATIONAL, MIDAS AUSTRALIA PTY LTD, INVESTORS MUTUAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, CLSA, CREDIT LYONNAIS SECURITIES ASIA LIMITED

Insurers to weather revenue resistance

roymorgansocial Leave a comment

Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 9-Feb-15

Jan van der Schalk of CLSA forecasts that Insurance Australia Group will post a 2014-15 interim cash net profit of $A591m. This compares with $A642m previously. Meanwhile, CLSA forecasts that QBE Insurance Group’s cash net profit for calendar 2014 will be $US933m ($A1.2bn). Australian insurers have benefited from cost-cutting and rising premiums in recent years

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, CLSA AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, WESFARMERS LIMITED – ASX WES, CITIGROUP PTY LTD

Special payout boosts Tabcorp

roymorgansocial Leave a comment

Original article by Andrew White
The Australian – Page: 21 : 6-Feb-15

Gaming group Tabcorp has announced a 2014-15 interim net profit increase of 64.1% to $A122.4m. Excluding abnormals the rise was 21.8% to $A90.9m, and revenue also grew 6.7% to reach $A1.12bn. The six-month distribution is $A0.10, up from $A0.08. CEO David Attenborough said the Australian-listed company would stage a pro-rata accelerated renounceable entitlement offer at an issue price of $A3.70, compared with the most recent on-market value of $A4.71. The proceeds will be partly used to fund a special distribution worth $A0.30 a share

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, ARGO INVESTMENTS LIMITED – ASX ARG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, UBS HOLDINGS PTY LTD

Echo’s Star performer set for makeover

roymorgansocial Leave a comment

Original article by Jessica Gardner, Vanessa Desloires
The Australian Financial Review – Page: 17 & 22 : 5-Feb-15

Australian-listed Echo Entertainment Group has posted a 2014-15 interim net profit of $A97.1m, which is 111 per cent higher than previously. Normalised revenue of $A1.2bn was up by 28.3 per cent, and Sydney’s The Star casino accounted for $A183m of normalised EBITDA of $A261m for the half-year. Echo Entertainment has spent $A870m on upgrading The Star in recent years, and it has flagged further expenditure on redeveloping the property

CORPORATES
ECHO ENTERTAINMENT GROUP LIMITED – ASX EGP, THE STAR, TREASURY CASINO AND HOTEL, CROWN RESORTS LIMITED – ASX CWN, JUPITERS LIMITED, CITIGROUP PTY LTD

Argo tips strong year for yield stocks given global volatility

roymorgansocial Leave a comment

Original article by Ruth Liew
The Australian Financial Review – Page: 15 : 3-Feb-15

Argo Investments has reported a 2014-15 interim profit of $A104.8m, which is three per cent higher than previously. The group achieved a return of 4.5 per cent for the half-year, while it will pay an interim dividend of $A0.14 per share. CEO Jason Beddow expects Australian investors to focus on stocks that offer solid yields in 2015, citing factors such as low interest rates and a high level of market volatility

CORPORATES
ARGO INVESTMENTS LIMITED – ASX ARG, STANDARD AND POOR’S ASX 200 INDEX, SUNCORP GROUP LIMITED – ASX SUN, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, APA GROUP – ASX APA, SANTOS LIMITED – ASX STO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ASALEO CARE LIMITED – ASX AHY, TELSTRA CORPORATION LIMITED – ASX TLS, MILTON CORPORATION LIMITED – ASX MLT, NEWS CORPORATION – ASX NWS

Volatility casts shadow over earnings forecasts

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 19 : 2-Feb-15

Stock price analysts and market economists are predicting renewed turmoil during the Australian profit reporting season in February 2015. Major factors are the rapid decline in mining and energy commodities prices after companies last issued their earnings forecasts, and the overall subdued trading conditions. However opinion is divided on how the S&P/ASX 200 Index will perform during calendar 2015, with Tim Rocks of Commonwealth Bank of Australia expecting a drop of 10% to around 5,000 points while Tony Brennan of Citi says the result will be a 9% gain to 5,850

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITIGROUP PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Apple revenue drops during ATO talks

roymorgansocial Leave a comment

Original article by Neil Chenoweth, Paul Smith
The Australian Financial Review – Page: 6 : 28-Jan-15

Global technology firm Apple is one of eight such businesses accused of using overseas tax havens to engage in base erosion and profit shifting, substantially reducing its tax liabilities in Australia. A Singaporean holding company received $A2bn worth of the profits from Australia in 2014, before passing them on to an entity registered in Ireland. Sales were down 1% at $A5.86bn, but Apple paid a mere $A80.4m in local tax that at least was higher than the $A36.4m for 2013. Its practices are also attracting scrutiny by the European Commission

CORPORATES
APPLE INCORPORATED, AUSTRALIAN TAXATION OFFICE, EUROPEAN COMMISSION

Markets drive Macquarie to bumper $1.5bn

roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 21 : 20-Jan-15

Investment banking firm Macquarie Group has again raised its 2014-15 profit forecast, for the second time in half a year, and now expects a result of up to $A1.52bn that would be close to an all-time high. The increase by between 10% and 20% is based on an improved trading environment as well as the decline in the Australian dollar foreign exchange rate. Experts note that Macquarie’s fixed-income, currencies and commodities operations perform better in times of heightened volatility. On 19 January 2015 the stock closed 5.4% higher at $A58.25

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. FEDERAL RESERVE BOARD, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, MACQUARIE SECURITIES PTY LTD

Lower $A to fuel foreign profit growth

roymorgansocial Leave a comment

Original article by Max Mason
The Australian Financial Review – Page: 23 : 13-Jan-15

The eight per cent fall in the value of the Australian dollar during 2014 has been a boon for companies with a significant presence offshore, particularly in the US. The shares of companies with strong earnings in the US rose by 12.7 per cent in 2014, and Chris Nicol of Morgan Stanley is upbeat about the earnings outlook for stocks such as Macquarie Group, CSL, Goodman Group and Ansell in 2015

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CSL LIMITED – ASX CSL, GOODMAN GROUP – ASX GMG, ANSELL LIMITED – ASX ANN, ALS LIMITED – ASX ALQ, BRAMBLES LIMITED – ASX BXB, NAVITAS LIMITED – ASX NVT, PHILO CAPITAL ADVISERS PTY LTD, WESTFIELD CORPORATION – ASX WFD, RESMED INCORPORATED – ASX RMD, SONIC HEALTHCARE LIMITED – ASX SHL, STANDARD AND POOR’S ASX 200 INDEX, INCITEC PIVOT LIMITED – ASX IPL