ABN Newswire

Asian Activities Report for April 11, 2011: Endocoal Limited (ASX:EOC) Announce Company Development Strategy And CEO Appointment

newsroom@abnnewswire.net — Mon, 11 Apr 2011 12:00:40 GMT

Endocoal Limited (ASX:EOC) announced a company development strategy which is to develop the Orion Downs thermal coal project, to delineate a JORC resource at its Rockwood PCI coal discovery and to explore the Talwood-Pretoria Hill coking coal prospect. To implement this strategy the Company has appointed Mr Tim Hedley, a mining engineer with over 30 years' experience in coal mining, as Chief Executive Officer. The Company is expecting to commence mine operations at Orion Downs by 2013.

China Magnesium Corporation Limited (ASX:CMC) has commissioned its existing magnesium ingot production plant in northern China and will commence magnesium production in April. The plant will initially produce approximately 2,000 tpa of magnesium and will gradually increase to 20,000 tpa as the plant expansion continues. The Company is aiming to achieve a production capacity of 105,000 tpa in three years.

Eden Energy Limited (ASX:EDE) has made the first commercial sale of its carbon nanofibres to an industrial battery manufacturer, receiving positive confirmation from the market of the commercial acceptability of Eden's carbon nano-products for electrical applications. Several leading Indian concrete manufacturers have expressed interest in testing Eden's carbon nanofibres as an additive to concrete to increase its performance. Initial testing of carbon nanofibres to be used in rubber and plastics will also begin in the US.

Moly Mines Limited (ASX:MOL) (TSE:MOL) said today that China Development Bank has approved US$500 million in project finance facilities to develop the Spinifex Ridge Molybdenum/Copper mine. Moly Mines is currently in advanced negotiations with an engineering consortium for the construction of the mine and associated processing plant with a designed capacity of 10 million tonnes per annum. Once drawdown of the funds is available, construction of the mine and processing facilities will take approximately 24 months.

Asia Business News
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Asian Markets Overview of January 12

newsroom@abnnewswire.net — Tue, 12 Jan 2010 13:30:59 GMT

Wall Street rose overnight as investors were expecting improvements in fourth-quarter earnings results. US industrial shares lifted the Dow and the S&P 500 to new 15-month highs after the upbeat Chinese economic data. The US dollar dropped 0.5 percent against a basket of currencies.

Asian markets ended higher on Monday as a strong rebound in China's exports raised investor optimism about Asia's economies. The MSCI index of Asia Pacific stocks traded outside Japan hit its highest level since July 2008, gaining 1.2 percent.

Company News

South Korea's POSCO (SEO:005490) forecasts global steel demand would increase by about 10 percent and expects iron ore and coking coal prices to recover this year. Analysts expect POSCO to raise its steel product prices in the second quarter as it has yet to negotiate raw material purchase deals for the fiscal year starting in April. POSCO will spend 10 trillion won this year on expanding its facilities and on acquisitions, the Korea Economic Daily reported.

Goldsun Development & Construction Co. (TPE:2504), Taiwan's largest producer of ready-mix concrete by capacity, said Monday its China unit, Goldsun Cement (Hunan) Co., will pay CNY675 million to China's Sinoma International Engineering Co. (SHA:600970) to build a cement plant for the Taiwanese firm. The first cement production line will be operational by July 2011.

The market is expecting Canon (TYO:7751) to increase offer for Oce NV (AMS:OCE) after Hermes Focus Asset Management said on Monday it would not tender its shares in Dutch photocopier and printing systems maker to Canon. The Japanese camera and office equipment maker's 730 million euro offer is already opposed by 10 percent shareholder Orbis Portfolio Management. Canon in November offered 8.60 euros per share for Oce, a 70 percent premium to the share price before the bid.

Japan's Fast Retailing Co. (TYO:9983) reported a 57% increase in its fiscal first-quarter net profit and raised its profit and sales projections for the full year amid strong sales of fall-season clothing, new store openings and growing overseas sales. Fast Retailing has upgraded its earnings outlook. It expects net profit for its full year ending August at around 67.5 billion yen, up from an original estimate of 62 billion yen.

Singapore listed rubber plantation firm GMG Global (SIN:590) shares soared as much as 11.5 percent to 14.5 Singapore cents after a media report about the company's improving business prospects. GMG is 51 percent owned by Sinochem International Corp (SHA:600500), and may triple its output to about 250,000 metric tonnes to provide for China's national rubber consumption, the newspaper said.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Asian Markets Report of December 11

newsroom@abnnewswire.net — Fri, 11 Dec 2009 13:30:17 GMT

Wall Street climbed on Thursday as the economic data showed a continued downtrend in continuing jobless claims and a drop in the US trade deficit to US$32.9 billion.

Asian stocks mostly Friday moved higher at opening after the strong economic figures from the US boosted investor confidence. Today the focus will be on a series of economic data of China. The nation's key official figures on industrial production, CPI, and retail sales are due out later in the day.

Company News

Japan's major telecommunications carrier KDDI Corp. (TYO:9433) said it will lay an undersea fibre-optic cable network to link Japan and Singapore in a joint project with five companies including U.S. Internet search giant Google Inc (NASDAQ:GOOG). The project is to deal with an expected increase in demand for communications services in the Asia-Pacific region, with cost estimated at US$400 million dollars. The consortium behind the project comprises Globe Telecom (PSE:GLO) of the Philippines, Google, KDDI Corp of Japan, Network i2i, Reliance Globalcom and TPG subsidiary Telemedia Pacific Inc.

Taiwanese synthetic rubber maker TSRC Corp. (TPE:2103) said Thursday its board has approved a plan to take a 30% stake in a synthetic rubber-producing joint venture in India. State-run Indian Oil Corp. (BOM:530965) will hold 50% of the joint venture and Japan's Marubeni Corp. (TYO:8002) the remaining 20%, said a person familiar with the situation.

It is reported that South Korea's Hana Micron (067310.KQ) has formed a joint-venture with Brazil's Altus Sistemas de Informatica to build a US$40 million semiconductor assembly plant in Brazil. The joint-venture will be known as HT Micron, which could invest up to $200 million in the plant.

Hontai Life Insurance Co. and Waterland Financial Holdings Co. (TPE:2889) are both bidding for US insurer Metlife Inc.'s (NYSE:MET) Taiwan unit, said sources. The acquisition cost of the unit could be between US$50 million and US$100 million.

Panasonic Corp. (TYO:6752) said it will buy a majority stake in Sanyo Electric Co. (TYO:6764) to secure its position as a leading provider of batteries for fuel-efficient cars. Panasonic has acquired a 50.19 percent stake in Sanyo Electric Co. for 403.78 billion yen, completing a tender offer that would create one of the world's largest consumer electronics conglomerates with a strong grip on solar and battery markets.

China CNR Corp, a leading maker of trains and rolling stock, plans to launch its Shanghai initial public offering later this month. It planned to issue up to 3 billion A shares in IPO to raise 6.44 billion yuan for investment projects. CNR and its rival China South Locomotive and Rolling Corporation (SHA:601766)(HKG:1766) are the two major train manufacturers in China, accounting for more than 95 percent market share in the country.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of September 10: Wall Street Extended Gaining Streak

newsroom@abnnewswire.net — Thu, 10 Sept 2009 13:00:19 GMT

Overnight US stocks rose for a fourth consecutive session led by industrial stocks. But market sentiment were dented after Federal Reserve report showed that consumer spending was still soft and retail sales were flat. The report also said labour market conditions remained weak across all districts.

The Australian shares closed flat yesterday as the disappointing retail sales data pared some early gains. The benchmark S&P/ASX200 index fell 1.6 points, or 0.04 per cent, to 4522.2, while the broader All Ordinaries lost 0.7 points to 4527.1.

Key Economic Facts and Figures

The Australian Bureau of Statistics (ABS) said the number of home loan approvals for owner-occupied housing fell by 2 per cent in July, seasonally adjusted, to 63,259. The fall in loan approvals was the first monthly decline since September 2008.

The Westpac-Melbourne Institute consumer sentiment index rose from 113.4 points in August to 119.3 points in September. The index has risen 34.4 per cent in the last four months.

Today the ABS will release labour force data for August. The Melbourne Institute Survey of Consumer Inflationary Expectations for September and the Westpac-Melbourne Institute Survey of Consumer Unemployment Expectations for September are also due.

M&A News

ABB Grain (ASX:ABB) shareholders have overwhelmingly backed the A$1.6 billion takeover by Canada's Viterra (TSE:VT). Shareholders voted 85 per cent in favour of the merger, which will create one the largest one of the world's largest exporters of wheat, canola and barley, with a 37 per cent market share in the three grains. The combination of the two companies is also expected to bring a further consolidation of the Australian agricultural industry.

Important Corporate News

Paladin Energy Ltd (ASX:PDN) has agreed to undertake an institutional private placement of 93.45 million ordinary shares to raise approximately A$419 million. The placement was prices at A$4.60 per share which represents a 6.1% discount to Paladin's lat closing price on ASX and a 0.5% discount to Paladin's 5 day volume weighted average price.

Carsales.com (ASX:CRZ) is scheduled to list on ASX today. The A$812 million listing of the online car classifieds company after it completed its initial public offering, with 46.39 million existing shares and 350,000 new shares sold at $3.50 per share, raising A$163.6 million.

Gindalbie Metal Ltd (ASX:GBG) said net profit ending June 30, 2009 for the consolidated entity was $A26.22 million compared to A$44.52 million in the previous year. Most of Gindalbie's income of A$33.45 million during the year came from the cash paid by AnSteel for its stake in Karara and Gindalbie. There was no dividend paid.

Ansell (ASX:ANN) chief executive Doug Tough will resign and the company had considered internal candidates for the position of CEO. Ansell had also engaged Spencer Stuart to undertake a comprehensive international search for candidates, including internal candidates.

BHP Billiton (ASX:BHP) said its Shenzi field in the Gulf of Mexico has now exceeded the facility nominal capacity of 100,000 barrels of oil per day. The facility has achieved sustained rates of 120,000 barrels of oil per day.

Boart Longyear Limited (ASX:BLY) said it has successfully completed the retail component of its 1 for 1 accelerated non-renounceable pro-rata entitlement offer to eligible retail shareholders. The entitlement offer is fully underwritten with total amount raised approximately US$157 million.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

LANXESS AG (ETR:LXS) Earnings Rebound In Q2 2009

newsroom@abnnewswire.net — Thu, 13 Aug 2009 16:30:09 GMT

LANXESS AG (ETR:LXS)(PINK:LNXSF) significantly increased earnings in the second quarter in comparison to the weak first quarter of 2009 despite the ongoing difficult economic conditions worldwide. The specialty chemicals company posted EBITDA pre exceptionals of EUR 112 million, in line with its published guidance of EUR 100-120 million. The operating earnings figure was down 50 percent year-on-year but rose 70 percent from the first quarter of 2009 due to substantial volume increases, notably in Asia, as well as savings yielded by the "Challenge09" package of measures. Another positive key metric for the second quarter was the EBITDA margin pre exceptionals at 9 percent, up from 6.3 percent in the first quarter of 2009.

Sales in the second quarter fell by 30 percent year-on-year to EUR 1.24 billion but rose 17 percent quarter-on-quarter due to a strong rebound in volumes, especially in Performance Polymers. Net income was positive at EUR 17 million after being negative for two consecutive quarters. LANXESS proved again in the second quarter that it is in a strong financial position by nearly doubling its operating cash flow to EUR 157 million from a year earlier and reducing net debt by 17 percent to EUR 719 million from the end of 2008. The improvement in operating cash flow was supported by a strict focus on working capital management.

"LANXESS has achieved a solid result in the second quarter in view of the challenging environment for the chemical industry," said Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG. "Our earnings have benefited not only from a pick-up in demand but also from our decision to quickly implement a package of self-help measures to counter the crisis."

Performance in Asia-Pacific Region

Sales in the Asia-Pacific region rose 74 percent to EUR 304 million in the second quarter in comparison to a very weak first quarter, with strong contributions coming from China, South Korea and India. The sharp increase in sales in the second quarter implies the region's share of Group sales has now risen to 25 percent.

Sales in all regions in the second quarter fell year-on-year by double-digit percentage amounts except for Asia-Pacific, which fell only by a single-digit percentage amount year-on-year.

Performance in Greater China

LANXESS Greater China sales increased by 7.8 percent to EUR 167.5 million for the second quarter of 2009 compared to the same period of 2008. Adjusted for exchange-rate effects and divested or newly integrated businesses, it receded slightly by 3.6 percent. In comparison to the weak first quarter of 2009, sales almost doubled from EUR 84.8 million.

"While the global economic recession continues to dampen demand for LANXESS products, we did see some improvement in the second quarter compared with the beginning of the year," said Martin Kraemer, CEO of LANXESS Greater China. "Growth in Greater China was mainly driven by the rubber business units and the Semi-Crystalline products business unit, aided by a recovery in the automotive industry and construction industries. Additional driving forces, one was the Ion Exchange Resins products business unit, which offers effective and innovative solutions for power plants, another the Material Protection Products business unit, which successfully launched the stabilizer Velcorin(R) to the Beverage Industry in China."

"We expect that the government stimulus package and domestic demand should keep China's automotive industry growing through 2009 and 2010. To meet the needs of auto makers in China, the migration of global components makers to the country will continue, even through the economic slowdown. As we are one of the upstream suppliers, our sale performance will benefit from this trend."

"Challenge09" and "Challenge12"

In order to support future earnings and safeguard the company's financial position, the LANXESS management has agreed with employee representatives and the IG BCE (the German Mining, Chemical and Energy Industry Union) to extend the "Challenge09" package of cost saving measures agreed upon at the start of this year and to introduce an additional package called "Challenge12".

"Challenge09" mainly comprises a combination of technical process improvements and remuneration decreases for all employees at all managerial levels. In this way, the specialty chemicals company aimed to cut costs worldwide by about EUR 250 million in 2009 and in 2010.

LANXESS now aims to save worldwide EUR 360 million in total between 2009 and 2012 with "Challenge09-12". The additional EUR 110 million in savings will be generated through flexible asset management as well as employees foregoing remuneration. These measures will not result in any additional expenses in the P&L.

"Challenge12 gives us the necessary flexibility to counter the effects of the crisis also in the next 24 months. This means we are well equipped for the time when the upturn materialises," said Heitmann.

Outlook

Underlying economic demand appears to have now bottomed out also in Latin America, North America and Europe. Asia is maintaining good momentum and other regions will start to recover, albeit at a slower pace. Destocking among customers is now completed but a trend towards restocking is not yet visible.

Overall, the business environment remains tough and the potential for setbacks still exists which could hinder an economic recovery. Therefore, LANXESS will wait until the publication of the third quarter results on November 12 to give a detailed earnings outlook for the full year 2009. The previous guidance of sales and earnings being below last year's level remains valid.

LANXESS, however, is targeting for the third quarter of 2009 an EBITDA pre exceptionals around the level of the second quarter of 2009. This is an ambitious target given the fact that the company's key operating earnings number for the third quarter has been in the past always weaker - on average 15 percent - than the second quarter result. In addition, the third quarter includes the traditional summer lull.

"The combination of a pick-up in demand and our enlarged package of cost savings measures will ensure that LANXESS will emerge strengthened from the crisis," said Heitmann.

Q2 2009 Key Data
(EUR million, changes in percent)
-----------------------------------------------------
                Q2 2009 Q1 2009 Change Q2 2008 Change
                        vs. Q1         vs. Q2 
-----------------------------------------------------
Sales             1,238   1,054 +17.5  1,765   -29.9
-----------------------------------------------------
EBITDA 
pre exceptionals    112     66  +69.7  223     -49.8
-----------------------------------------------------
EBITDA margin 
pre exceptionals(%) 9.0     6.3        12.6    
-----------------------------------------------------
Net income           17     -14        55      -69.1
-----------------------------------------------------
Operating 
cash flow           157     122 +28.7  82      +91.5
-----------------------------------------------------

Korie Jiang
Corporate Communications
Tel: +86-21-6109-6704
Korie.Jiang@lanxess.com

OCT (Asia) (HKG:3366) Turning Challenges into Opportunities by Consolidation

newsroom@abnnewswire.net — Mon, 2 Mar 2009 10:31:56 GMT

Despite the adverse environment under the global economic slowdown and dwindling market demand, Overseas Chinese Town (Asia) Holdings Limited (HKG:3366), together with its subsidiaries the "Group"), a top-of-the-line paper packaging products manufacturer in China, finds its principal business keeping a steady development pace. This is the result of its efforts in aggressive marketing development, enhanced internal management, cost reduction through boosting its bargaining power by centralized raw materials sourcing and the like, as well as improved product quality. Its management believes that while the grave economic conditions will for sure accelerate the pace of consolidation of the paper packaging industry, the intense market competition will only create more room for growth for companies with solid strengths.

2009 will see the operation of the Group's new production base in Huizhou, Guangdong in the second half of the year, which is planned to be developed into the core production base of the company. The production base will comprise an environmentally friendly, advanced and modern steel industrial complex, plus an office complex that houses the business, R&D and showroom facilities. During the process, there will be an expansion of the Group's production capacity. Going forward, the Group will keep up with its efforts in various initiatives to enlarge its market share and enhance its gross profit margin, refreshing its product mix to meet customers' demand, exploring the high-end customers segment and increasing the proportion of high value added products in its sales mix, such as colour-print packaging products.

At the same time, the Group will reinforce its capital risk management to develop its business at the appropriate scale and pursue growth on a solid track. The management' is full of confidence in the PRC's long-term economic growth and the sustainable increase in its domestic consumption. Buoyed by the economic stimulus package introduced by the government, the mainland economy is expected to regain its momentum gradually. It is believed that relying on its quality products, innovation strengths, steadily increasing customer base, increasingly strong strategic position, the Group will be able to get through the difficult times under the economic slowdown.

Apart from consolidating its principal business of manufacturing high quality paper packaging containers and other packaging products, the Group also explores other investment projects with a good potential. By the end of last year, the Group has obtained a 25% equity stake in Chengdu Tianfu OCT Industry Development Co. Ltd ("Chengdu OCT") by way of acquisition. Chengdu OCT owns a large-scale tourism and property development project, which comprises a theme park, urban entertainment culture facilities and residential estate. Occupying a site of around 2.28 million square meters, the development will be the largest urban tourism and entertainment project in Southwestern China. Its theme park, which opened to public this January, together with its Park Square, received nearly 200,000 visitors in the 7-day Spring Festival holiday season and becomes a new sightseeing hotspot in Southwestern China.

The Group is of the view that Chengdu is in a rapid growth phase and the development of its tourism and property industries is considered as top priority by local government and authorities. At the same time, the increasing purchasing power of the population in Chengdu is also expected to give a boost to the growth of its tourism and property markets. Such a backdrop is expected to spawn opportunities for Chengdu OCT.

2009 is going to be a challenging year. The Group will allocate its resources in a flexible manner in light of market conditions so as to explore development opportunities on different horizons and actively participate in investment projects favourable for its future development. In this way, the Group seeks to keep on expanding its business scale in order to deliver better results.

CEO Biography

Mr. Ni Zheng, aged 41, is an executive Director and CEO of the company. Mr Ni has participated in the Group's management since 1999 as the director of Shenzhen Huali. Mr. Ni is also a director of OCT Hong Kong Co., Ltd and various subsidiaries, and Chengdu OCT. He had been the deputy general manager and general manger of investment department of OCT Enterprises Company, the ultimate shareholder of the Company. Ni graduated from the department of Applied Physics of Chongqing University and obtained a bachelor's degree in Science and a master degree in Engineering in 1988 and 1991, respectively.

IR Contact
Overseas Chinese Town (Asia) Holdings Limited Company Secretariat
Tel: + 86-755-2693-5918 / +86-755-2693-5118
Fax: + 86-755-2690-6606
E-mail: contact.asia@chinaoct.com
Website: www.oct-asia.com

Australian Market Report of February 6: Higher on Leads from US and UK

newsroom@abnnewswire.net — Fri, 6 Feb 2009 13:00:09 GMT

Overnight US stocks rose as retailers' better-than-expected sales reports offset the worries over Bank of America. In UK, Bank of England cut the official interest rates by half a percentage to 1 per cent, the lowest since the Bank of England was created in 1694.

Yesterday the Australian shares closed slightly lower with the benchmark S&P/ASX200 index down 0.3%, or 9.3 points, at 3428.6, while the broader All Ordinaries index declined 0.3%, or 9.7 points, at 3372.6. The market opened higher after the positive lead from the US and UK, but could also be rocked by the earnings of NAB and News Corp.

Key Economic Facts and Figures

The Australian Industry Group/Housing Industry Association has released performance of construction index of January, which was up to 34.1 index points from 30.9 in December. An index score lower than 50 shows the construction activity is in contraction. It has remained under 50 since March last year.

Treasury Secretary Ken Henry said the federal government's A$42 billion rescue plan was designed to address the periods of greatest economic weakness, but also warned that an economic stimulus package of the size proposed by the coalition could plunge Australia into recession.

Today the Reserve Bank of Australia releases its quarterly statement on monetary policy.

M&A News

The Foreign Investment Review Board has approved the deal for China's Zhonghin Lingnan (SHE:000060) to buy a controlling stake in zinc and lead miner Perilya (ASX:PEM). Majority of Perilya shareholders have voted in favour of the A$45.5 million deal to sell Zhonghin almost 200 000 shares at 23 cents each.

Canada's TransAtlantic Petroleum Corp (TSE:TNP) raised its offer for Australia's Incremental Petroleum Ltd (ASX:IPM) by about 2 percent to A$1.07 per share, after Incremental rejected the bid citing the offer undervalued the company.

Important Corporate News

NiPlats Australia Limited (ASX:NIP) said the company has achieved its first stage of defining Australia's largest vanadium deposit. The Board Of Directors believes the magnitude and grade of the resource represents a significant new discovery in the Australian mineral landscape.

Ansell (ASX:ANN) expects its half-year operating profit increase more than 15% compared to the previous corresponding period. Ansell will provide further guidance for the 2008/09 on February 11.

Onesteel (ASX:OST), Australia's second biggest steelmaker, has axed on its senior management team and merged some divisions as a part of its cost-cutting plan in response to the fall of steel prices.

National Australia Bank (ASX:NAB) says its unaudited cash earnings of about A$1.1bn in the December quarter. The group's bad and doubtful debts in the period reached A$824 million.

News Corporation (ASX:NWS) reported its first half financial results yesterday with a $US5.9 billion net loss, which was "a direct reflection of the grim economic climate". The CEO Rupert Murdoch said the group was cutting costs and jobs.

Futuris (ASX:FCL) expected its 2009 full year underlying profit after tax and minorities would be within the range of market expectations of A$51 million to A$60 million.

Suncorp-Metway Ltd. (ASX:SUN) said it planned to cut dividend and its interim profit could fall as much as 45%. Suncorp Chief Executive John Mulcahy will leave the company.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net