ABN Newswire

Australian Market Report of August 13, 2010

newsroom@abnnewswire.net — Fri, 13 Aug 2010 13:30:00 GMT

The Australian stock market is higher in morning trade, despite that Wall Street recorded falls for the third consecutive trading day.

In early trade, the S&P/ASX200 index was up 0.37%, at 4417.1 points, while the All Ordinaries index gained 0.37%, to 4438.8 points. Materials stocks rose 1.3%, industrials were 0.7% higher and the financials index gained 0.1%.

In economics news, the unemployment rate for July rose to 5.3% from 5.1% in June, according to the labour force data released by the Australian Bureau of Statistics. The Australian labor market is not as strong as recent figures suggested.

Companies News

Giant beverage firm Coca-Cola Amatil Limited (ASX:CCL) reported high earnings from its first half operations this year. It garnered some A$212.7 million from the first six months leading to the end June, improving by 12.1% in the previous corresponding year. The company's earnings before interest and tax in Australia increased by 9.6%, while the New Zealand and Indonesia operations saw earnings growth of 5% and 20% respectively on local currency bases. The company will maintain its organic growth strategy and new investments will be made in this area.

Xiaoxiao Education Limited (ASX:XXL) today announced its new acquisition of the Huayu Pre-School complex in the city of Chongqing, China. Due to officially open in September 2010, this new asset will have facilities capable of recruiting 250 children over six classes. Huayu Pre-School has already established good reputation in the local area, which can reduce the cost in its future development. Listed on the Australian Securities Exchange in February 2010, Xiaoxiao Education Limited operates highly successful childhood education businesses in China with over 4,000 enrolled students and over 500 staff. With a track record spanning 14 years, Xiaoxiao is currently expanding its operations throughout China and planning more asset acquisitions for future growth.

Australia's specialist recruiter and HR service provider Ross Human Directions Limited (ASX:RHD) reported profit growth for the year ended 20 June 2010. It achieved a total revenue of A$373.9 million. Its net profit after tax was A$6.906 million, up by 70% than FY09. The company said that the service provided by its Managed Services division has significantly improved profitability, which reflects the trend that more clients are attracted by the more sophisticated and complex HR solutions the Managed Services division provided. Whilst the Managed Services has once again been a significant contributor to the company's profit result, its Recruitment business remains a key driver of revenue.

Qiubei Fu
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: qiubei.fu@abnnewswire.net

Australian Market Report of November 25: Slower Pace of US Recovery

newsroom@abnnewswire.net — Wed, 25 Nov 2009 13:00:30 GMT

US stocks closed weaker overnight after the US Commerce Department lowered its estimates of third quarter GDP and consumer spending. US economic growth in the third quarter was revised down to 2.8 per cent, down from an early estimate of 3.5 per cent expansion. Investors also worried Chinese banking regulator's capital-adequacy requirements would force the nation's lenders to tighten bank lending in China.

Australian share retreated soon after a small rise this morning. Yesterday the local market reversed early gains to end lower, as investors locked in profits from resources and banking stocks. The benchmark S&P/ASX200 index lost 32 points, or 0.7 per cent, to 4685, while the broader All Ordinaries fell 31 points, or 0.7 per cent, at 4708.2.

The Australian dollar opened slightly higher today after the US equities market closed flat overnight. At 7am, the Australian dollar was trading at 92.02 US cents.

Key Economic Facts and Figures

Reserve Bank of Australia (RBA) deputy governor Ric Battellino says with the economy having only recently entered a new upswing, the economy growth in Australia could extend for a few more years. A further expansion of the resources sector, including the development of some very large gas projects, is also expected.

The Australian Bureau of Statistics today releases construction work data for September quarter. The Department of Employment and Workplace Relations releases its skilled job vacancies survey.

M&A News

The board of Brazilian steelmaker CSN (NYSE: SID) has approved the purchase of a 16.3% stake in Australian coal producer Riversdale Mining (ASX: RIV). CSN could pay A$6.10 per share for up to 31.2 million shares in the coal producer, for a total of A$191 million.

Binding offers for BHP Billiton's (ASX:BHP) Ravensthorpe nickel project in Western Australia are due today, and it is believed that China Metallurgical Group Corp (MCC) is considering teaming with Minara Resources (ASX:MRE) to submit a joint bid for Ravensthorpe.

Important Corporate News

Australia's largest brick and tile producer Brickworks (ASX:BKW) said it saw initial signs of increased construction activity in November, due to increased sales from the Federal Government's spending on school infrastructure and social housing. The company forecasted a solid result for the 12 months to July 31 2010, on the back of a record A$113.7 million net profit in the previous fiscal year.

Programmed Maintenance Services (ASX:PRG) posted a five per cent fall in net profit for the six months to September 30 of A$12 million, 5 per cent down from A$12.6 million in the previous corresponding period. The company said with weak economic conditions, small declines of group revenue and profit are a good result. The company expects a broader market increase to occur next year and says it is well positioned to benefit from the recovery in casual labour demand across the country.

Building services provider Norfolk Group (ASX:NFK) has posted a 30 per cent rise in half year profit to A$5.681 million, up from A$4.386 million in the prior corresponding half. Norfolk said conditions remain uncertain in some markets, but a record order book positions the company well for the future.
GrainCorp (ASX:GNC) said its net profit for the year ended September 30 was A$63.16 million, compared to a loss of A$19.94 million in the previous year. The result was just above its guidance for a profit between A$61 million and A$63 million. But managing director Mark Irwin said grain receivals will be lower in fiscal 2010, due to different seasonal conditions.

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

Australian Market Report of August 26: More Positive Catalysts

newsroom@abnnewswire.net — Wed, 26 Aug 2009 13:00:23 GMT

Overnight Wall Street was up on economic data, positive earnings and the nomination of Federal Reserve chief Ben Bernanke to serve a second term. The Conference Board's August index of consumer confidence rose for a second month, exceeding economists' forecast.

The Australian market yesterday fell as investors locked in profits from the previous sharp rally. The benchmark S&P/ASX200 index closed down 20.3 points, or 0.5 per cent, at 4405.8 points, while the broader All Ordinaries index lost 16.7 points, or 0.4 per cent, to 4417.5 points.

Key Economic Facts and Figures

On Wednesday the Australian Bureau of Statistics is scheduled to release construction work done data for the June quarter. The Department of Employment and Workplace Relations publishes its job vacancy report.

M&A News

Sylvania Resources Limited (ASX:SLV) said Federal Court has approve its application to compulsorily acquire the remaining shares in Great Australian Resources Limited (ASX:GAU). Sylvania Resources said it had a relevant interest in 89.82% of the issued shares in Great Australian Resources as at Aug. 11.

Important Corporate News

Shopping centres operator Westfield Group (ASX:WDC) has reported a loss of A$708 million for the six months ended June 30, compared to a profit of A$1.28 million in the previous corresponding period in 2008. The result is largely due to its asset devaluations of A$2.9 billion. Westfield said assuming no material change in economic conditions or currency exchange rates, its guidance for calendar 2009 remains unchanged.

Asciano Group (ASX:AIO) posted a net profit of A$71.8 million for 2008/09, down 63.8 per cent on the prior year. Asciano says it will continue to take a prudent approach and plans for a continued difficult operating environment in 2009/10.

Toll road operator Transurban (ASX:TCL) posted a net loss of A$24.6 million for the year to June 30, compared with a loss of A$109.7 million last year. The group said its toll roads showed resilient traffic numbers in the year delivering a rise on toll revenue, while cost reductions had improved its balance sheet.

Lihir Gold (ASX:LGL) has made a $US301 million loss in the first half of fiscal 2009, down 924 per cent from $US36.5 million in the first-half of fiscal 2008. Lihir maintained its production guidance for the full year at one to 1.2 million ounces of gold.

Seven Network Ltd (ASX:SEV) said net profit in the year to June 30 after one-off items fell to A$12.5 million from A$142 million a year earlier after it wrote down the value of some media investments. Analysts say Seven is in a strong financial position for a potential acquisition, with net cash of almost A$1.4 billion.

Transfield Group (ASX:TSE) reported a net loss of A$55 million for the year to June 30 2009, compared with a profit of A$82.2 million in 2008. The company is confident it will continue to expand its business through concentrating on market segments and geographies with good growth opportunities and continuing strong cash management.

Kagara Ltd (ASX:KZL) reported a net loss of A$94 million for the year to June 30 2009, compared with a profit of A$65 million in 2008. The significant falls in base metal prices, a high level of debt and a record wet season had a major impact on profitability and cash flows during the year.

Goodman Fielder (ASX:GFF) has posted a net profit of A$177.1 million for the year ended June 30, up from A$27.7 million in the prior corresponding period. Goodman Fielder said it expects to see efficiency gains resulting from its capital expenditure program and plant rationalisations begin to flow through, underpinned by its strengthened focus on branded everyday foods.

Consolidated Media Holdings (ASX:CMJ) has sold its 27 per cent shareholding in listed on-line job company SEEK (ASX:SEK) to institutional investors for A$5.05 a share, which will deliver it gross proceeds of $440.6 million by September 1.

Pacific Brands (ASX:PBG) reported a net loss of A$234.5 million for the year ended June 30, compared with a profit of A$116.6m the year before. It booked A$380.6 million of expenses as it reassessed the value of brands, plants, equipment, land, buildings and inventory, among other things.

Sino Gold Mining Ltd (ASX:SGX) delivered a first half net profit of A$12.6 million, up from a A$2.7 million loss for the same period a year earlier. Sino Gold has been placed in trading halt pending the possible release of an announcement in respect to a potential change-of-control transaction affecting the company.

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

Australian Market Report of August 25: Take a Breather after Rally

newsroom@abnnewswire.net — Tue, 25 Aug 2009 13:00:22 GMT

US stocks ended flat overnight in light trade volumes as the market was awaiting the economic data this week. The Dow Jones Industrial Average edged higher to its highest close in more than nine months.

The Australian market jumped higher yesterday on strong overseas leads, particularly lifted by comments from the US Federal Reserve. The benchmark S&P/ASX 200 index was up 135.5 points, or 3.16 per cent, at 4426.1 points. The broader All Ordinaries index surged 128.5 points, or 2.98 per cent, to 4434.2 points.

Key Economic Facts and Figures

The Australian Bureau of Statistics (ABS) said on Monday that new motor vehicle sales fell by 6.9 per cent, seasonally adjusted, to 75,006 units in July, from 80,559 units in June. It was the biggest monthly drop since January 2001 while the result in June was the best result in over four years

M&A News

Woolworths Ltd (ASX:WOW) is to enter the hardware sector with a takeover offer for Australia's second largest hardware retailer Danks Holdings Ltd (ASX:DKS). The offer is made by a joint venture entity owned by Woolworths and US home improvement retailer Lowe's Companies Inc (NYSE:LOW). The joint venture has offered A$13.50 per Danks share, valuing the company at A$87.6 million. The board of Danks unanimously recommends that Danks shareholders accept the offer in the absence of a superior proposal.

Important Corporate News

Suncorp-Metway (ASX:SUN) has reported a 40 per cent fall in annual profit after booking impairment charges in its banking business. Net profit for the year ended June 30 was A$348 million, down from A$588 million in the previous year.

Beverages company Foster's (ASX:FGL) booked a net profit for 2008/09 of A$438.3 million, up 292.3 per cent from A$111.7 million in the prior year. Foster's said it is well placed to take advantage of an upturn in economic conditions when it happens.

Slot machine producer Aristocrat Leisure (ASX:ALL) has reported a A$33 million loss for the first half of 2009-10, down from a profit of A$71.4 million in corresponding period a year ago. The company said it will exit about 30 low-margin markets in the next 12 months and warned it expects the rest of this year to remain tough.

Flight Centre (ASX:FLT) has posted a 72 per cent fall in annual net profit to A$38.164 million for the year to June 30, down from A$134.78 million in the previous financial year. The result was affected by A$59.4 million in one-off asset impairment and writedowns, plus $38 million in US trading-related losses and expenses.

Industrial building services and refrigeration company Hastie Group (ASX:HST) posted a 53 per cent rise in full-year profit to A$58.34 million in the year ended June 30, up from A$37.96 million in the previous year. The company said its four Australasian divisions together contributed more than 70 per cent of group revenue and over 75 per cent of EBIT.

Mirvac Group (ASX:MGR) reported a net loss of A$1.078 billion in the year ended June 30, compared with a net profit of A$171.8 million for the previous year. The result was affected by Investment Division property revaluations, writedowns and a loss on inventory.

Online employment group Seek Ltd (ASX:SEK) posted a 28 per cent drop in full year net profit to A$55.3 million for the year to June 30, from A$76.3 million last year. But the company said its business fundamentals remained strong despite the job advertisements declined amid the economic downturn.

Centro Retail Trust (ASX:CER) reported a net loss of A$2.68 billion for the year to June 30 2009, compared with a loss of A$867.71 million in 2008. The loss is primarily attributable to a number of non cash items including property devaluations and derivative mark-to-market adjustments.

Paint company Wattyl (ASX:WYL) booked a net loss of A$1.5 million for the year ended June 30, 2009 after lower sales in Australia and New Zealand, compared to a net profit of A$11.7 million in the prior financial year. Wattyl said the outlook remained uncertain but the company expected a modest improvement in the 2010 financial year.

APA Group (ASX:APA) has reported a rise in net profit for the year ended June 30 rose 17.2 per cent to A$78.77 million from the previous year. The result was driven by the strong performance and growth of its gas transportation businesses.

St Barbara Limited (ASX:SBM) Gold production up 52% to 239,000 ounces (2008: 157,000 ounces) at a cash operating cost of A$829 per ounce (2008: $555).The gold price assumed in Ore Reserve calculations was A$1,075 per ounce for fiscal year 2010 production and A$850 per ounce. St Barbara Ltd Mineral Resources including Ore Reserves at 30 June 2009 were 102.7 million tonnes at 2.9 g/t for 9.5 million ounces.

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

Australian Market Report of August 19: Rebound on Favourable Earnings

newsroom@abnnewswire.net — Wed, 19 Aug 2009 13:00:54 GMT

US stocks ended the day higher overnight after a sharp slump in the previous trading session. The rebound was helped by better-than-expected earnings from retailers such as Dow component Home Depot.

The Australian market yesterday closed slightly lower following the negative lead from overseas markets. The local shares posted a poor start but finally clawed back some of its early losses of the day, inspired by some better-than-expected results. The benchmark S&P/ASX200 fell 6.8 points, or 0.2 per cent, at 4381.6, while the broader All Ordinaries dropped 12.2 points, or 0.3 per cent, to 4385.9.

Key Economic Facts and Figures

The minutes of the Reserve Bank's August 4 board meeting noted that the cash rate had already been reduced to a very low level in anticipation of very weak economic outcomes. RBA has left open the possibility of further reductions in the cash rate. RBA said there was the risk of keeping interest rates too low for too long in a recovering economy.

The Australian Chamber of Commerce and Industry small business survey showed that the level of small business expectation of economic performance was - 36.9 points, well below the 50-point mark which indicates recovery would happen within a year.

Westpac and the Melbourne Institute will release their report of economic activity for June, and the Housing Industry Association is to publish its state and national outlooks for the June quarter.

M&A News

Car brakes maker Pacifica Group (ASX:PBB) says its majority shareholder, German-based manufacturing giant Robert Bosch, will move to compulsorily acquire the remaining shares in Pacifica it does not already own.

Important Corporate News

Building group Boral (ASX:BLD) has posted a 42 per cent fall in annual net profit for the year ended June 30 to A$142 million, down from A$243 million in the previous year. The result was impacted by the significant deterioration in building and construction market activity in the US and Australia. The company forecasts the current market conditions to broadly continue during the first half of 2009/10.

CSL Ltd (ASX:CSL) has reported net profit for the year ended June 30 was A$1.146 billion, a 63.3 per cent rise compared to A$701.80 million in the previous year. The jump was largely due to favourable movements in foreign exchange. The company will pay a final dividend of 40 cents.

Qantas (ASX:QAN) announced the cost reduction program, called Q Future, aiming to cut costs by A$1.5 billion over the next three years. The airline booked a net profit of A$117 million in fiscal year 2008/09, down 87.9 per cent on the prior year. Qantas said it is not possible to provide guidance as high levels of volatility in the economic outlook, industry capacity, passenger demand, fuel prices and exchange rates continue.

Iluka Resources (ASX:ILU) posted a A$55.8 milliion loss for the six months to June 30, down from a profit of A$15.6 million in the first half of 2008. Iluka said an improvement it had expected in earnings and cash flow had been delayed due to the global economic crisis but it is well placed to benefit from China's continuing growth and global economic recovery.

Macmahon Holdings (ASX:MAH) said its full-year net profit fell 65 per cent to A$17.2 million. But the company said it is well placed to make a strong profit recovery in 2011. The company didn't declare a final dividend.

Domino's Pizza Enterprises (ASX:DMP) posted a jump of 29.7 per cent in net profit for the year ended June 28 to A$15.35 million, up from A$11.83 million in the previous year. The company also expects to grow profit this year by up to 15 per cent.

Fund manager Perpetual Ltd's (ASX:PPT) net profit fell to A$37.7 million for the year to June 30, compared with A$128.8 million in the prior corresponding period. Perpetual says it is well positioned for a market recovery despite its full year profit slumped 71 per cent due to a plunge in equity markets.

The Reject Shop Ltd (ASX:TRS) has posted a 13.9 per cent rise in annual net profit on strong sales. Full year net profit was A$19.0 million for 52 weeks to June 28, 2009, up 13.9 per cent on its prior 53 week financial year. The retailer said it expects another testing year as volatile conditions continue.

Origin Energy Ltd's (ASX:ORG) underlying net profit, excluding one off items, rose 20 per cent to A$530 million from A$443 million in the year ended June 30. It is looking for underlying earnings growth of about 15 per cent this year.

Skilled Group Ltd (ASX:SKE) reported a net profit of A$28.3 million for the year to June 30 2009, down 28 per cent compared with the A$39.3m for FY08. The company said the result was impacted by the relative timing of revenue declines and cost reductions and it is well placed for significant profit growth.

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

Australian Market Report of May 15: Rebound on Recovery Hopes

newsroom@abnnewswire.net — Fri, 15 May 2009 13:00:35 GMT

Wall Street rebounded overnight from the massive fall in previous trading session. The market shrugged off the news of a growing unemployment claims in Labour Department report as investors believed the job losses had hit their peak and looked towards an economic recovery.

The Australian share market yesterday closed significantly lower as investors anticipated further drop in Europe and US. The benchmark S&P/ASX200 index fell 132.7 points, or 3.4 per cent, to 3723.4, while the broader All Ordinaries index declined 131.7 points, or 3.4 per cent, to 3710.8.

Key Economic Facts and Figures

The value of commercial lending commitments in March jumped by A$5.187 billion or 20.5 per cent, seasonally adjusted, to a five-month high of A$30.498 billion, according to Australian Bureau of Statistics (ABS) data.

M&A News

Investment bank UBS said BHP Billiton (ASX:BHP) is likely to help Rio Tinto (ASX:RIO) to raise capital as an alternative to its proposed $US19.5 billion investment deal with Chinalco. The report said BHP could propose to assist in underwriting a substantial rights offering for Rio, and in exchange propose an iron-ore joint venture in the Pilbara. BHP would probably make a move after Australian authorities release their decision on the deal in mid-June. It is speculated that Chinalco may consider revise the terms of the takeover offer to avoid shareholders and regulators hurdles.

Woolworths Ltd (ASX:WOW) has agreed to become a cornerstone investor in Western Australian craft brewery Gage Roads Brewing Co Ltd (ASX:GRB). Under the agreement Woolworths will acquire 25 per cent of Gage Roads through a placement of 76.41 million shares to raise up to A$1.9 million.

Important Corporate News

White Energy (ASX:WEC) has tied up with the world's biggest private coal producer, US-based Peabody (NYSE:BTU), as it seeks to expand into the US and Chinese markets. The two companies plan to build an ambitious coal upgrading plant in the Powder River Basin in the US. Peabody has acquired options to buy 15 per cent of White Energy, while Peabody has also gained the right to work with White Energy in China.

Macmahon Holdings (ASX:MAH) plans to raise A$60million from a share offer to pay down debt and reduce gearing. Leighton, which holds 17.4 per cent of Macmahon, will take part in the offer and sub-underwrite part of it.

Origin Energy Ltd. (ASX:ORG) has agreed to buy the long-term power purchase agreements associated with the Osborne cogeneration plant in South Australia from Babcock & Brown Power (ASX:BBP).

Paladin Energy (ASX:PDN) has reported a net loss of $US6.9 million for the March quarter and a loss of $US578.3 million for the nine months to March. Gross profit for the quarter was $US10.8m and for the nine months $US39.2m.

Fairfax media (ASX:FXJ) shares dropped below A$1 yesterday as Standard & Poor's downgraded the firm's credit rating to below investment grade after a 27 per cent cut in its earnings guidance. S&P brings the company's long-term corporate credit and debt ratings from BBB- to BB+.

Monadelphous (ASX:MND) has secured contracts valued at A$100 million in the aluminium, coal and iron ore markets with major customers BHP Billiton (ASX:BHP) and Rio Tinto(ASX:RIO).

Skilled Group Limited (ASX:SKE) said that its oil and gas manning business, Offshore Marine Services Australia (OMS), had entered a joint venture, Offshore Marine Services Alliance Pty Ltd (OMSA), which has secured an agreement with Chevron Australia Pty Ltd to supply marine vessels and labour to support the Gorgon project.

Bandanna Energy Limited (ASX:BND) announced today that its application EPCA 1189, through its wholly owned subsidiary Carnarvon Coal Pty Ltd, has now been approved by the Queensland Government authorities. The new permit, EPC 1189, is located in the southern Bowen Basin and is contiguous with EPC 1195 awarded to Bandanna in February 2009.

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

Australian Market Report of April 24: Boosted by Upbeat Earnings Reports

newsroom@abnnewswire.net — Fri, 24 Apr 2009 13:00:27 GMT

The US stock market was higher in late trading overnight as some upbeat earnings reports boosted the sentiment. Investors bet on an economic recovery and started to buy financial and technology stocks.

Yesterday the Australian shares market appeared to be decoupled from Wall Street. The local shares shrugged off the bad lead of US stocks and finished firmer with rising in all sub-sectors, as traders put more of their attention to the local news. The benchmark S&P/ASX200 was up 2%, or 74.8 points, at 3743, while the broader All Ordinaries surged 1.9%, or 68.6 points, at 3695.8.

Key Economic Facts and Figures

The Australian Bureau of Statistics said new car sales in Australia fell 3.2% for March, seasonally adjusted. In March, 70,279 new vehicles were sold, the lowest number since February 2003.

The Housing Industry Association (HIA)-Austral Bricks Trades index showed that trade availability improved in the March 2009 quarter to a reading of minus 0.05, up just 0.01 index point from the December quarter. A reading of zero index points means there are an equivalent number of jobs to workers.

M&A News

Last night Treasurer Wayne Swan has approved China Minmetals' US1.2 billion bid for OZ Minerals (ASX:OZL), but also imposed conditions on the sale to protect Australian jobs. Minmetals will acquire all the key assets from OZ minerals except Prominent Hill mine.

Important Corporate News

Newcrest Mining (ASX:NCM) has reported a 5 per cent fall in gold production in March quarter compared to previous quarter. The company plans to increase its annual gold production by 40 per cent to 2.3 million ounces over the next five years and copper production by 30 per cent to 100,000 tonnes.

Online job company SEEK (ASX:SEK) said it would raise A$100 million through a share placement to push the education business. SEEK's joint chief executives, Andrew and Paul Bassat, and Consolidated Media Holdings Ltd (ASX:CMJ) would participate in the placement.

Macquarie Airports (ASX:MAP) reported an EBITDA of A$165.6 million for the three months to March 31, representing an increase of 2.2 per cent over the previous corresponding period.

Health products producer Blackmores Ltd (ASX:BKL) says its net profit for the nine months ended March 31 dropped 10.4 percent to A$15.5 million compared with the year-earlier period. But the company yesterday said it was confident full-year profit would match the A$19.1 million of last year.

Linc Energy (ASX:LNC) today announced it has officially opened its Underground Coal Gasification (UCG) to Gas to Liquids (GTL) Chinchilla Demonstration facility with strong international project partner and government support from, Japan, Vietnam, South Africa and the USA which is being described as the only kind of facility in the world.

Caltex Australia (ASX:CTX) has reported an unaudited first quarter replacement cost of operating profit of A$97 million for the first quarter of 2009, compared to A$87 million for the same period of 2008.

Woodside Petroleum (ASX:WPL) said its total oil and gas production for the first-quarter increased 20% from a year earlier as the company brought on new projects. But Woodside's revenue for the first quarter fell 1% to A$1.09 billion as the price of oil and gas slumped.

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

Australian Market Report of April 23: Market Seeking Direction

newsroom@abnnewswire.net — Thu, 23 Apr 2009 13:00:55 GMT

US stocks overnight fell in a choppy trade on Morgan Stanley's grim earnings report and possibility of a General Motors bankruptcy. Meanwhile, traders were cautious about banks' credit conditions.

The Australian share ended slightly lower on Wednesday despite strong lead on Wall Street. The market is still seeking direction amid global volatility. The benchmark S&P/ASX 200 index was down 9.2 points, or 0.25 per cent, to 3668.2, while the All Ordinaries fell 5.9 points to 3627.2.

Key Economic Facts and Figures

Figures released by Australian Bureau of Statistics showed that consumer price index (CPI) for the March quarter rose 0.1 per cent from the 2008 fourth quarter, well below economists' expectation of 0.5 per cent. The annual inflation was 2.5 per cent compared with 3.7 per cent in the year to December 2008.

The International Monetary Fund (IMF) has slashed its forecast for Australian economic growth in its latest World Economic Outlook. The IMF has revised its forecast of Australian growth in 2009 from "close to zero" to now 1.4 per cent contraction.

Today the Australian Bureau of Statistics releases data on sales of new motor vehicles in March. The Housing Industry Association will unveil trades report for March.

M&A News

Babcock & Brown Infrastructure (ASX:BBI) said its two main European port operations were performing below expectations. And it is still holding talks with interested parties on the sale of its PD Ports in Britain.

Lion Nathan Ltd (ASX:LNN) was placed in trading halt as it holds confidential discussions with its biggest shareholder, Japanese beer maker Kirin Holdings Company Ltd (TYO:2503). Kirin approached Lion Nathan after close of trade yesterday with non-binding and conditional proposal to buy the remaining shares of the company.

Important Corporate News

Property developer Stockland (ASX:SGP) said its pre-tax profit in its residential division now would be A$60 million lower than earlier guidance. Stockland also revised its earnings guidance down to ten cents per share, post-inventory impairments.

Beaconsfield Gold (ASX:BCD) said its gold production in the March 2009 quarter was 18,304 ounces at its Tasmanian mine, a 21 per cent jump compared with the previous quarter.

Contract labour provider Skilled Group (ASX:SKE) has slashed its full-year net profit guidance by up to 34 per cent to between A$27 million and A$30 million, down from the A$34 million to A$41 million expected two months ago. The revise is because of the worst collapse in business conditions it has experienced.

Origin Energy (ASX:ORG) has signed a A$660 million conditional deal to buy a coal seam gas exploration permit in Queensland to retain a dominant position in the Queensland gas exploration market.

Timbercorp (ASX:TIM) has appointed voluntary administrators as the agribusiness company has been hurt by the combined impact of declining global asset values, tightening credit, the economic downturn and drought.

Santos (ASX:STO) today reported its revenue in quarter ended March 31 fell 15 per cent to A$540 million on-year, as production slipped 4 per cent to 13.2 million barrels of oil equivalent.

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

Australian Market Report of April 14: Hoping Earnings Improvement in US Banks

newsroom@abnnewswire.net — Tue, 14 Apr 2009 13:00:06 GMT

Overnight US stocks ended mixed. Investors were hoping improvements in banks which will unveil their earnings report this week. But the market was also weighed by speculation that the US government is preparing General Motors for a bankruptcy filling by June 1.

The Australian market is expected to rise after Easter holiday as metals prices were up overnight. On Thursday the benchmark S&P/ASX200 index gained 52.1 points, or 1.4%, at 3671.6, while the broader All Ordinaries surged 50 points, or 1.4% to 3617.5.

Key Economic Facts and Figures

Analysts say Reserve Bank of Australia is forced to cut its rates by large measures while major banks only pass on a minute rate cut to customers after RBA's latest 25 basis points reduction. The RBA is expected to slash official interest rate as low as 2 per cent this year.

The Australian Property Monitors group says Australia's home prices have been lower across the country, with the number of properties sold at auction falling dramatically in the first quarter of the year. Sydney and Perth showed the sharpest falls, with average prices dropping by more than A$150,000.

Today the National Australia Bank business survey for March is released. The Australian Bureau of Statistics will release lending finance data for February.

M&A News

Qantas (ASX:QAN) says it is not in any active discussions on mergers with Malaysian Airlines and not pursuing further discussions on potential maintenance, repair and overhaul joint ventures. An official from the Malaysian carrier insisted yesterday that the airlines were still in talks.

Transport infrastructure operator Asciano Group (ASX:AIO) has extended a deadline for bids on its port and rail assets until the end of this week, as some bidders requested the extension due to the Easter break.

Important Corporate News

Travel agency Flight Centre (ASX:FLT) has flagged more jobs cut to reduce costs. Flight Centre has already cut about 1000 jobs globally over the past 15 months, most from its newly acquired US travel business, Liberty.

Recruitment firm Hamilton James & Bruce (ASX:HJB) has reported a A$5.9 million half-year loss. HJB's auditor, PricewaterhouseCoopers, said there "is a significant uncertainty whether the company will continue as a going concern".

Telstra (ASX:TLS) will consider a voluntary separation of its wholesale and retail arms as well as the sale of some assets to the government's proposed A$43 billion broadband network. The company's board has set up a special committee of directors and executives for a new approach and negotiation with the Government.

Woodside Petroleum (ASX:WPL) has decided not to go ahead a $US100 million expansion of the BHP Billiton (ASX:BHP) operated Stybarrow oilfield project in an effort to conserve cash to pay for its liquefied natural gas (LNG) strategy.

Qantas (ASX:QAN) said today the company will slash up to 1750 jobs, including 500 management positions. Qantas said it would cut freight capacity both internationally and domestically and also decrease its full year pre-tax profit outlook to between A$100 million and A$200 million, down from its previous forecast of A$500 million.

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

Rubicor Group Limited (ASX:RUB) Acquires Marketing And IT Recruitment Company Gemteq Executive

newsroom@abnnewswire.net — Tue, 5 Feb 2008 12:08:24 GMT

Rubicor Group Limited ("Rubicor")(ASX: RUB) today announced it is acquiring Gemteq Executive ("Gemteq"), which specialises in recruitment across a range of disciplines, in particular in Sales & Marketing and Information Technology.

Wayman Chapman, Chief Executive Officer of Rubicor, said: "The acquisition of Gemteq provides a significant expansion to our range of services, diversifies our earnings base and represents a good strategic fit to our existing operations. The EBIT contribution from the acquisition of Gemteq is expected to be in the order of approximately $8 million on an annualised basis for this financial year and will be cash EPS accretive from year one."

"Gemteq has had a strong track record since inception, growing revenue at an annual compound rate of around 100% while maintaining an EBIT margin above 30%. This financial record is reflective of an outstanding business with a strong profit focus, high quality leadership and low staff turnover."

"Rubicor's decentralised business model is appealing as it allows Gemteq to maintain its unique business culture and identity, while benefiting from the synergies and skills that Rubicor brings to all its operating businesses."

Gemteq Executive was established in 2001, operating in Sales & Marketing, Information Technology, Business Support and Retail recruitment. Gemteq is one of the largest specialist agencies in Sales & Marketing in Australia and has a significant presence in Information Technology recruitment, which represents over half of its revenue. Gemteq operates in permanent, contract and temporary recruitment services, having recently grown its contracting business to approximately one-third of total turnover.

Gemteq was nominated as Australia's fastest growing recruitment company and 12th fastest growing company in Australia by Smart Company 2007. Gemteq was also ranked 37th in the BRW Fast 100 in 2007.

Andrew Grover and Luke Mullins, Directors of Gemteq, said: "Gemteq has a strong track record of managed growth in recruitment services. We are proud of our supportive, performance based culture, low staff turnover, close financial management and focus on higher margin work. However, we see fantastic opportunities to develop further as part of the Rubicor stable, using its support to maximise growth while maintaining our distinctive style and identity."

Rubicor will pay an initial cash consideration of $19.5 million, with an agreed earn-out payment plan over the next five years based upon Gemteq's performance as part of the Rubicor Group. Both directors of Gemteq are committed to remain at Gemteq for a minimum of three and a half years and are subject to a non-compete restraint for the five year period following cessation of their employment with Rubicor. The acquisition will be funded through Rubicor's existing acquisition financing facility and is expected to be completed within one week, subject to satisfaction of a number of conditions precedent.

"I am delighted to welcome Gemteq to the Rubicor Group. This strategic acquisition will see an exciting extension to our services and earnings growth. We will continue our strategy of pursuing acquisition opportunities in successful, established businesses, together with promoting organic growth in existing operations and making strategic investments in start-up companies." Mr Chapman said.

For more information please visit www.rubicorgroup.com.au

Wayman Chapman
TEL: +61-2-9324-4287