Australian Market Report of May 25, 2010: Foster's (ASX:FGL) Signed Distribution Agreements with Charmer Sunbelt

The Australian shares gave up most of yesterday's gains this morning with the benchmark ASX200 index retreated 1.7 per cent due to uncertainty over Europe economy. Wall Street overnight finished sharply lower as rescue of a Spanish savings bank triggered new fears over the eurozone debt issues.

Yesterday, both the S&P/ASX 200 Index and the Broader All Ordinaries index rose more than 2 per cent led by financial and resources sectors.

In economics news on Tuesday, the Melbourne Institute releases Wages Report for the May quarter.

Company News

Foster's Group (ASX:FGL) said today that its American business has signed long-term distribution agreements with The Charmer Sunbelt Group, which will gain the exclusive rights to sell Foster's portfolio of wines in New York, Maryland and the District of Columbia. The agreements mark the first phase of a US route-to-market initiative launched upon the completion of Foster's Wine Strategic Review in February last year. The company said Charmer Sunbelt has the capabilities and commitment in these key markets to grow our core brands, build our luxury portfolio and partner with us in bringing new, innovative brands and ways of working to the market.

GBST Holdings Ltd (ASX:GBT), global provider of technology services to the financial services industry, said today that it expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be between A$16 million and A$17 million for the 2010 year. This represents an increase of more than 30pc on reported EBITDA in FY2009 of A$12.69 million. The company expects revenue growth in all areas of its business while the improving economic environment is benefiting its clients in the financial services industry. GBST also said its major focus is Asia and it saw new opportunities emerging in its key markets of Europe, Asia and Australia.

Appliance rental company Thorn Group Ltd (ASX:TGA) has recorded net profit after tax of A$19.5 million for the year to March 31, 2010, up 58.2 per cent from A$12.32 million in the previous year. The company says all rental product categories have experienced higher demand, with whitegoods providing about a third of new installations, audio visual and computers 40 per cent, and the remainder across furniture and gym equipment. Thorn has found that increased demand has been generated by many of its customers not having mortgages, leaving them less affected by rising interest rates and, in current economic conditions, preferring to rent rather than buy goods.


Related Companies

Thorn Group Limited
      

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Fosters Group Limited