COST CONTROL

Guardian Media Group to stick with Australia despite earnings slide

roymorgansocial Leave a comment

Original article by James Chessell
The Australian Financial Review – Page: 10 : 27-Jan-16

UK-based Guardian Media Group expects to post an operating loss of Stg53m ($A106.6m) for the year to 31 March 2016. The newspaper publisher has attributed the bearish outlook to a decline in print advertising revenue and lower-than-forecast growth in online advertising revenue. The group aims to reduce costs by 20 per cent, although a spokesman says it remains committed to its Guardian Australia website.

CORPORATES
GUARDIAN MEDIA GROUP PLC, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, UNITED STATES. NATIONAL SECURITY AGENCY

Fairfax investor Waislitz backs cuts

roymorgansocial Leave a comment

Original article by Damon Kitney
The Australian – Page: 23 : 25-Nov-15

Media reports have suggested that News Corp Australia intends to retrench 55 journalists, while there is speculation that further job cuts are planned at Fairfax Media. Businessman Alex Waislitz does not expect the quality of journalism to be affected by the job cuts, and he argues that it is essential for companies in "sunset industries" to reduce costs in order to survive. Waislitz holds around two per cent of Fairfax’s shares via Thorney Investment Group and Thorney Opportunities Limited.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, THORNEY OPPORTUNITIES LIMITED – ASX TOP, DOMAIN.COM.AU, IANGELS

US expansion and local relief for BlueScope

roymorgansocial Leave a comment

Original article by Tim Binsted
The Australian Financial Review – Page: 13 & 18 : 27-Oct-15

Shares in BlueScope Steel closed 10.6 per cent higher at $A4.50 on 26 October 2015, after the group revealed that its Port Kembla steelworks will stay open. BlueScope had previously warned that it would have to close the last blast furnace unless costs were reduced. BlueScope has negotiated a deal with Port Kembla workers which includes a wage freeze and job cuts, while the New South Wales Government will defer payroll taxes for three years. BlueScope will also buy out Cargill’s 50 per cent stake in the North Star mill in the US.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, CARGILL INCORPORATED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Spending cuts keep coming as BHP Billiton starts strongly

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 23 & 30 : 22-Oct-15

BHP Billiton has reported that its petroleum division’s output for the September 2015 quarter was 65 million barrels of oil equivalent. The group will reduce the division’s capital expenditure by a further $US200m ($A275m) in 2015-16, to $US2.9bn. Glyn Lawcock of UBS says that while additional cost reductions will be harder to achieve after several years of cutbacks, he believes there is potential for most cost savings. Iron ore, copper and coking coal output exceeded analysts’ forecasts for the quarter.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED

Santos slashes 200 jobs to rein in costs

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 : 13-Oct-15

Listed oil and gas producer Santos has announced further job cuts, after it revealed plans to retrench 565 employees in August 2015. Santos intends to shed an additional 200 employees, with the bulk of the job cuts to be at its head office in Adelaide. The job losses are part of a cost-reduction strategy, with Santos aiming to achieve cost savings totalling $A180m by the end of 2015. Santos shares closed $A0.04 lower at $A5.93 on 12 October.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, CNOOC LIMITED, PETROCHINA COMPANY LIMITED, SINOPEC CORPORATION, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

800 Aurizon jobs go amid cost-cutting

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 27 : 8-Oct-15

Australian-listed rail freight operator Aurizon Holdings aims to reduce its costs by up to $A380m over the next three years. The group has also flagged the retrenchment of an additional 800 full-time employees in its operations division, which follows the loss of 3,000 jobs over the last five years. Meanwhile, CEO Lance Hockridge says Aurizon may consider acquisitions if the West Pilbara Iron Ore Project is shelved.

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, BROOKFIELD INFRASTRUCTURE PARTNERS LP, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WIGGINS ISLAND COAL EXPORT TERMINAL PTY LTD

NBN cost rise no surprise to Thodey, further increase not expected

roymorgansocial Leave a comment

Original article by David Ramli
The Australian Financial Review – Page: 23 : 1-Sep-15

Former Telstra CEO David Thodey expects the latest blowout in the cost of the national broadband network will be the last as NBN Co develops a firm understanding of its challenges. It was not unusual to confront large increases in technology projects, said Thodey, who negotiated the sale of Telstra assets to NBN Co. The latest figure of $A56 billion is up $A15 billion on earlier estimates.

CORPORATES
NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, OVUM RESEARCH

WA chilling as big miners cut $20b spending

roymorgansocial Leave a comment

Original article by Julie-anne Sprague
The Australian Financial Review – Page: 4 : 31-Aug-15

In the past three years, BHP Billiton, Rio Tinto and Fortescue Metals have reduced operational spending by $US14.3 billion ($A19.9 billion). Most cuts were made in their iron ore operations in Western Australia. The mining giants intend to continue their cost-cutting initiatives. They are even raising their cost-cutting targets, with Rio Tinto’s lifting its target for 2015-16 from $US750 million to $US1 billion.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESFARMERS LIMITED – ASX WES, CBRE PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD

BHP tipped to cut spending as rout bites

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 24-Aug-15

BHP Billiton will unveil its annual results on 25 August 2015. The company is expected to announce weaker revenue and profit because of depressed commodity prices. Its cost-cutting target is likely to be raised, from the current level of $US4 billion ($A5.4 billion) by 2017. BHP may experience difficulties with adhering to its policy of increasing or at least maintaining its dividend in US dollar terms.

CORPORATES
SOUTH32 LIMITED – ASX S32, FORTESCUE METALS GROUP LIMITED – ASX FMG, OIL SEARCH LIMITED – ASX OSH, DEUTSCHE BANK AG, WORLEYPARSONS LIMITED – ASX WOR, PALADIN ENERGY LIMITED – ASX PDN, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP

BHP to cut 37pc of jobs in Melbourne

roymorgansocial Leave a comment

Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 29-Jul-15

BHP Billiton is expected to retrench, relocate or redeploy about 100 employees at its head office in Melbourne in the next 18 months. The resources group has previously shed about 80 jobs at the Melbourne office, and the latest proposed cuts are likely to reduce staff numbers to about 300. BHP also intends to make cutbacks in other areas, including its legal and corporate affairs teams, while its Treasury division will be relocated to the UK.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32