STRATEGIC PLANNING – AUSTRALIA

Timing off, but BHP split still on: investors

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 18-Dec-14

BHP Billiton’s Australian-listed shares have fallen by more than 30 per cent since the group revealed plans to spin off its non-core assets. The stock has been hit by the downturn in the prices of commodities on which BHP will focus if the demerger proceeds. Michelle Lopez of Aberdeen Asset Management expects the demerger to go ahead, adding that it would most likely require a sustained decline in commodity prices for the group to abandon the demerger

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, ABERDEEN ASSET MANAGEMENT LIMITED, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD

Power plant half shut as gas rises, demand falls

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Original article by Matt Chambers
The Australian – Page: 20 : 11-Dec-14

AGL Energy has advised that it will close down four of the eight generating units at its gas-fired Torrens Island power station in South Australia in 2017. The move has been attributed to factors such as the rising cost of gas for domestic consumption and a decline in energy use. AGL shut down the four older generating units for several months earlier in 2014 due to low demand for electricity

CORPORATES
AGL ENERGY LIMITED – ASX AGL, SANTOS LIMITED – ASX STO

CCA sheds 260 jobs to help cut costs by $100m

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 &20 : 9-Dec-14

Australia-listed Coca-Cola Amatil (CCA) has advised that its EBIT for the second half of 2014 will be higher than the first-half result of $A316.7m. The group’s underlying EBIT for calendar 2013 was $A833m. Meanwhile, CCA will retrench 260 employees in the finance, human resources and IT departments in 2015 as it seeks to achieve further cost savings. CEO Alison Watkins notes that sales of its new products are performing well

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, GRAINCORP LIMITED – ASX GNC, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CITIGROUP PTY LTD, THE COCA-COLA COMPANY, PEATS RIDGE WATER PTY LTD, BARISTA BROS

Qantas on course for profit of $350m

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 & 20 : 9-Dec-14

Qantas expects its 2014-15 interim underlying net profit to be within the range of $A300m to $A350m, compared with a loss of $A252m previously. Deutsche Bank has responded by upgrading its full-year forecast from $A364m to $A801.5m. Qantas has benefited from factors such as its $A2bn cost-cutting initiative and lower fuel costs. Reducing debt remains the priority, although CEO Alan Joyce says the carrier could potentially resume paying dividends earlier than forecast

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE BANK AG, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

BHP to live within its means

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 19 : 25-Nov-14

BHP Billiton has indicated that its focus will be on maximising production at its existing assets rather than pursuing large acquisitions. CEO Andrew Mackenzie has told an investor briefing that any future acquisitions are likely to be restricted to conventional oil and gas assets. BHP will also continue to seek productivity improvements and reduce capital expenditure, with plans to scale back the latter by $US600m in 2014-15 and $US1bn in 2015-16

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, HESS CORPORATION, CHEVRON CORPORATION, CITIGROUP PTY LTD

NAB hires Deloitte ahead of stepping up life division sale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 20-Nov-14

Financial market analysts estimate that the life insurance business of National Australia Bank (NAB) is worth around $A1.4bn. Deloitte has been hired to advise the banking major on options for the business, which could include selling all or part of it. Ross Curran of the Commonwealth Bank believes that NAB’s life business can be sold if it is offered at an appropriate price. The life business is part of NAB’s MLC division

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DELOITTE TOUCHE TOHMATSU LIMITED, MLC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, METLIFE INSURANCE LIMITED, JP MORGAN AUSTRALIA LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, ZURICH INSURANCE COMPANY, AMERICAN INTERNATIONAL GROUP INCORPORATED, CLSA AUSTRALIA PTY LTD

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

George Weston Foods hungry for acquisitions

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 11-Nov-14

George Weston Foods boasts a 34 per cent share of Australia’s packaged bread market, and CEO Andrew Reeves says it aims to topple market leader Goodman Fielder. George Weston has ramped up its marketing activities in the last several years and reduced its production and distribution costs. Reeves says the group will consider growth options such as joint ventures or acquisitions in sector such as specialty and artisan breads

CORPORATES
GEORGE WESTON FOODS LIMITED, ASSOCIATED BRITISH FOODS PLC, GOODMAN FIELDER LIMITED – ASX GFF, WILMAR INTERNATIONAL LIMITED, FIRST PACIFIC COMPANY LIMITED, TIP TOP BAKERIES, PRIMARK STORES LIMITED, AB MAURI, LION PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL

The Iconic offers last-minute delivery

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 5-Nov-14

The Iconic has responded to consumer demand by delivering goods to customers on Saturdays. The online clothing retailer also hopes to increase sales by offering same-day delivery on weekdays until Christmas Eve. MD Adam Jacobs notes that the online retail sector is enjoying growth of 14-15 per cent, and he expects this growth to continue. He also expects The Iconic to become profitable much more quickly than most e-commerce businesses

CORPORATES
THEICONIC.COM.AU, INTERNET SERVICES AUSTRALIA 1 PTY LTD, AUSTRALIA POST, STAR TRACK EXPRESS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

NAB tells rivals it is ready for a fight

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Original article by James Eyers, Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 31-Oct-14

National Australia Bank (NAB) posted a 4.5 per cent decline in net interest income from business lending in the year to 30 September 2014. CEO Andrew Thorburn says the banking major will pursue a range of measures to ensure that it remains Australia’s leading business bank, including hiring more business bankers. He has ruled out relaxing NAB’s lending standards in the sector. NAB has reported a 2013-14 profit of $A5.18bn

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED