CORPORATE TURNAROUNDS – AUSTRALIA

QBE swings to profit after North American sell-off

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 & 22 : 25-Feb-15

QBE Insurance Group has posted a 2014 profit of $US742m ($A950m), following a loss of $US254m previously. Revenue was six per cent lower at $US18.23bn, while it boasted an insurance profit margin of 7.6 per cent. QBE will gain $US95m from the sale of its workers’ compensation business in Argentina, which follows asset sales in 2014. Shareholders will receive a final dividend of $A0.22 per share

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, STEADFAST GROUP LIMITED – ASX SDF, WESTPAC BANKING CORPORATION – ASX WBC, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, NIKKO ASSET MANAGEMENT GROUP

Scale of Qantas turnaround catches Joyce by surprise

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Original article by Steve Creedy
The Australian – Page: 20 : 10-Dec-14

Alan Joyce, CEO of Qantas Airways, admits that he and his management team had not expected their cost-cutting strategy to bear fruit so rapidly. He has been able to forecast a 2014-15 interim underlying profit pre-tax of up to $A350m, after the previous loss. The carrier’s stock on 9 December closed $A0.01 lower at $A2.38, but had gained nearly 14% the day before when the news was released. Meanwhile independent senator Nick Xenophon wants the Australian Competition & Consumer Commission to look into whether Qantas’s refusal to lower its fuel surcharge despite a falling crude oil price constitutes misleading and deceptive conduct

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BOEING COMPANY, CITIGROUP PTY LTD, AIRBUS SAS, NICK XENOPHON GROUP

Flying Kangaroo bounces back as oil prices tumble

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Original article by Michael Smith
The Australian Financial Review – Page: 19 : 17-Nov-14

Qantas CFO Gareth Evans says a "transformation" program to result in cost savings of $A600m in 2014. He says this will be the main factor in the carrier’s return to profits, rather than the recent downturn in the price of oil. Qantas expects to gain just $A20m from lower fuel costs in the first half of 2014-15, although some analysts have suggested that this could top $A292m. Evans has also downplayed speculation about a dividend payment, saying its focus is reducing debt and becoming cash-flow positive

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BOEING COMPANY

Darrell Lea’s sugar rush

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 21 : 24-Sep-14

VIP Petfoods GM Rex Devantier says the Darrell Lea confectionery business is now cash-flow positive and trading on a double-digit multiple. VIP Petfoods bought the company from administrators in 2012, and it has since slashed Darrell Lea’s staff numbers and secured deals to distribute its products via supermarket chains. Devantier notes that Darrell Lea has also launched a range of new products

CORPORATES
DARRELL LEA CHOCOLATE SHOPS PTY LTD, VIP PET FOODS

Billabong sees clear water in revival

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Original article by Blair Speedy
The Australian – Page: 18 : 29-Aug-14

Billabong International has announced a 2013-14 full-year net loss of $A233.7m, an improvement from $A859.5m in 2012-13. Excluding abnormal charges the EBITDA reached $A52.2m. The surf and skate clothing distributor and retailer in late 2013 struck a recapitalisation deal worth $A368m with US-based private equity firms Centerbridge Partners and Oaktree Capital. CEO Neil Fiske now says the Australian-listed company has lifted its US sales after years of declines, and growth in the Asian region has been 5% for the year

CORPORATES
BILLABONG INTERNATIONAL LIMITED – ASX BBG, OAKTREE CAPITAL MANAGEMENT LLC, CENTERBRIDGE PARTNERS LP, SURFSTITCH PTY LTD, ELEMENT, SWELL COMMERCE INCORPORATED

Wesfarmers slashes $680m off Target

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Original article by Blair Speedy
The Australian – Page: 19 : 3-Jul-14

Wesfarmers has reduced the value of its Target discount department stores chain by $A680 million. However, Wesfarmers CEO Richard Goyder is confident that the business can be improved. Its earnings fell by 53 per cent to $A70 million in the first half of 2013-14. A turnaround, led by Stuart Machin, will reduce the product range, refresh stores and sell excess stock

CORPORATES
WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, COLES GROUP LIMITED, PACIFIC BRANDS LIMITED – ASX PBG, METCASH LIMITED – ASX MTS, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, THE REJECT SHOP LIMITED – ASX TRS, KMART AUSTRALIA LIMITED