Sydney, Sept 19, 2007 (ABN Newswire) -
Australian supermarket Coles Group, says its full-year profit result hard hardly changed form a year earlier, as grocery earnings stalled. The company says its net profit before one-off items was $792 million, compared with $787 million a year ago. Coles said it was inappropriate to maintain the earnings guidance it issued in February for fiscal 2008 because of a change of ownership, but it would continue to operate in line with that guidance. Coles Group is the target of an $18.5 billion takeover bid by Wesfarmers has suffered a loss in market share in its core food and liquor business to rival Woolworths. Coles profits have increased steadily since 2002.
Fairfax newspapers are reporting that Rio Tinto and BHP Billiton are considering charging Chinese steel makers a premium to cover shipping costs, on top of huge expected increases in iron ore prices. The bargaining positions of Australian's iron ore giants have strengthened dramatically this year because of soaring Chinese demand.
Iron ore prices have surged 50 per cent on the Chinese spot market and almost 100 per cent since the start of the year. The shipping premium would be on top of ordinary price rises, which analysts predict will be as large as 30 per cent. Rio Tinto posted record earnings in 2006.
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http://abnnewswire.net/lnk/4OM090UQAustralian based investment company Babcock & Brown Capital says its 57.1 per cent-owned eircom Group has sold its radio mast site business to Irish investment group Towercom Holdings for $258 million. eircom owns Ireland's copper and fibre backbone telecommunications network and is the largest provider of fixed line wholesale and retail telecommunication services in Ireland. BCM director Rob Topfer says the proceeds from the sale will be reinvested in eircom's core business activities, and in renewing and improving the efficiency of its local access network and operations. Babcock and Brown Capital have fallen further into the red since 2006.
Source: Finance News Network © 2007
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