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ResMed Inc. (RMD) announced a record quarterly revenue and net income of US$247 million and US$42.1 million respectively for the three months to September 30, 2009. The company said revenue and income were up 13% and 50% on the previous corresponding period.

ResMed said diluted earnings per share for the quarter was US55c, an increases of 53% on the pcp.

The company said Selling, General & Administrative (SG&A) costs increased 8% to US$76.8 million for the September 2009 quarter, over the pcp, while Research and Development (R&D) expenses increased 4% compared to the same period.

ResMed said both expenses were favourably impacted by the appreciation of the U.S. dollar against international currencies.

The company said inventory, at US$175.1 million, increased by US$17.7 million compared to June 30, 2009.

President and CEO, Kieran T. Gallahue, said the company’s favourable mix of product sales and market share gains led to a 19% increase in the Americas over the prior year quarter, resulting in US$134.7 million in revenue.

“Sales outside the Americas were impacted by currency movements, in particular the depreciation of the Euro against the US dollar,” Mr Gallahue said.

“As a result, sales outside the Americas increased by 8% to US$112.3 million, but were up 13% in constant currency terms.”

Mr Gallahue said cash flow from operations for the September quarter was US$64.1 million.

As at 1047 AEDT, ResMed shares were up 10c to $5.50.

RBS – Round Up – 061109

Telecom Corporation of New Zealand Limited (TEL) reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.

However, Telecom said net earnings increased 9% in the same period to NZ$163 million, which was partly attributed to a NZ$43m one-off effect from changes in tax law. The company said a Southern Cross dividend of NZ$35m was received in the quarter, compared to NZ$39m in Q1 FY09.

Telecom said revenue for the quarter slid 6.5% on the pcp, to NZ$1,356 million, while operating expenses fell 7.7% to NZ$909 million.

CEO, Paul Reynolds, said EBITDA remained on track due to revenue growth in the mobile division as a result of a strong start for the XT mobile network, and the ongoing progress of the company’s cost out programme.

“We have been successful in a market that has seen a significant rise in competition and customer choice,” Mr Reynolds said.

“Telecom saw a net increase of 64,000 mobile customers during Q1, with 242,000 customers on XT at the end of its first full quarter of operation.”

Mr Reynolds added that there had been a 16% increase in average revenue per user on like for like customers.

Telecom said fixed broadband market growth has remained stable, at around 11%, with total connections on Telecom’s network reaching 899,000 during the quarter.

In regards to the Government’s fibre plans, Mr Reynolds said the company remains engaged at multiple levels of Government.

“The current structure makes it difficult for Telecom to participate effectively while balancing shareholders’ interests,” Mr Reynolds said.

“Discussions have emphasised our support for the Government’s vision and our belief that given the right structure we can partner with Government to deliver ultra fast broadband faster and more cost effectively, to more New Zealanders than anyone else, avoiding network duplication.”

Looking ahead, the company said guidance for adjusted group net earnings has increased from NZ$400m to NZ$440m for the year (previously NZ$370m to NZ$410m).

FY11 to FY13 EBITDA guidance was maintained, while Telecom declared a Q1 dividend of 6c per share.

At 1033 AEDT, Telecom shares were trading up 3c to $2.00.

Toll Holdings Limited (TOL) announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems (“LDS”). Toll said LDS provides an integrated international sea and air freight forwarding service as well as transport and logistics services.

The company added that LDS serves the import, export and trans-shipment requirements of retail, trading, industrial and infrastructure customers throughout the UAE, with strong volumes in the key European and Asian trade lanes.

Toll’s managing director, Paul Little, said the acquisition enhances the company’s xisting operations in the Middle East and is also consistent with its growth strategy.

“The capability and positioning of LDS as a quality freight forwarder in the trade lanes between Dubai and Europe / Asia Pacific is attractive to Toll and when combined with our existing operations helps to secure a global trans-shipment hub for freight movements between Europe and Asia for TGF,” Mr Little said.

“Into the future, LDS will also provide Toll Global Forwarding with a platform for strong growth in the broader UAE and Middle East region.”

Toll said LDS currently generates revenues of approximately A$50 million, with 60% of the revenue generated from air and sea freight forwarding and the balance from customs clearance and other logistics services.

At the close of trade Thursday, Toll shares were trading at $8.14.

A boost in retail sales and the release of better than expected job figures sent the Dow above the 10,000 mark Thursday. A rise in all 30 Dow components saw the index make its largest single session percentage gain in over three months. 

In job news, new unemployment claims fell from 532,000 the previous week to the lowest level since January at 512,000 last week. Forecasts were for 522,000 claims.

Continuing claims dropped from 5.817 million to 5.749 million in the same period, which was slightly better than expected.

The Senate and House also voted to lengthen unemployment benefits by up to 20 weeks as well as extend the homebuyer tax credit.

In a separate report, worker productivity rose by 9.5% in the third quarter, well ahead of the 6.5% fall anticipated.

The Labor Department’s October unemployment report is due out Friday in the US, with the unemployment rate expected to rise from 9.8% to 9.9% in October. 

The Dow Jones gained 203.82 points, or 2.08%, to 10,005.96, the S&P 500 put on 20.13 points, or 1.92%, to 1,066.63 and the NASDAQ rallied 49.80 points, or 2.42%, to 2,105.32. 

Financials surged with JPMorgan the best of the major banks, adding 3.9%.

Bank of America advanced 2.9%, while American Express climbed 5%.

Costco put on 1% after revealing sales at stores open over a year rose more than expected.

Wal-Mart and Target advanced 1.8% and 0.9%.

Gap jumped 3.5% on the back of better than expected sales.

Tech heavyweights Microsoft, Apple and IBM rose between 1.3% and 1.8%.

Cisco added 2.8% before it reported falls in both quarterly earnings and revenue, however still topped estimates.

Hewlett-Packard and Oracle gained 2.3% and 2%. 

Aircraft manufacturer Boeing and machinery maker Caterpillar rose 3.5% and 3.2%.

NYMEX light crude oil for December delivery fell US62c to settle at US$79.78 a barrel.

Exxon Mobil and Chevron put on 1.7% and 1.3%.

COMEX gold for December delivery rose US$2 to settle at US$1,089.30 an ounce.

European Markets

Positive economic data out of the US sent European stocks higher. The European Central Bank and Bank of England announced that their interest rates would remain unchanged.

The BoE also said it would increase its asset-purchase programme by 25 billion pounds.

The UK benchmark FTSE 100 added 17.75, or 0.35% to 5,125.64. The French CAC40 put on 38.40 points, or 1.05% to 3,708.73, while the German DAX advanced 36.69, or 0.67% to 5,480.92.

BNP Paribas jumped 3.3% as the French bank beat quarterly earnings forecasts.

Standard Chartered and Société Generale advanced 1.5% and 0.7%.

Commerzbank dropped 4.7% after saying it expected to make a loss in both 2009 and 2010. German peer Deutsche Bank lost 1%.

Lloyds, Royal Bank of Scotland and Barclays fell 3.8%, 3.5% and 1.4%. 

Retailers including Carrefour and Tesco rallied. They added 3.5% and 2.4% respectively.

ITV Plc surged 9.6% after the UK private television company forecast an increase in advertising sales in December.

Miners were mixed as metals prices weakened. Anglo American and Antofagasta added 0.8% each, while Xstrata dipped 0.2%.

BHP Billiton shed 0.3% as Aussie peer Rio Tinto put on 0.4%.

Vedanta slid 2.1% after reporting a significant decrease in first half profit. 

UK listed energy company Royal Dutch Shell gained 1.4%, while Total and BP rose 1.2% and 1%.

German software company Software AG climbed 8.2% after raising full-year forecasts.

Japanese Markets

Japan’s Nikkei lost ground as investors locked in profits ahead of the release of the US employment data. Exporters were among the biggest losers.

The Nikkei 225 shed 126.87, or 1.29% to 9,717.44.

Sanyo Electric slumped 20.4% after Panasonic bid for the company at a discount to its share price. Panasonic lost 1.9%.

Sony dipped 2.1%.

Automakers Honda and Toyota fell 2.6% and 0.8%. Nissan added 0.3%.

A cut to its profit forecasts sent Fuji Media 3.3% lower. The stock also received a broker downgrade.

Heavyweight financials Mitsubishi UFJ Financial Group and Mizuho Financial Group put on 1% and 1.1%.

Sumitomo Realty & Development lost 2.2% on concerns property developers may have to pay higher interest rates when they sell debt.

Chubu Electric Power shed 2.1% for the same reason.

Menswear store Aoyama Trading fell 2.6% after posting a loss.

Hong Kong Market

The Hang Seng continued its bumpy ride, with the market losing ground Thursday, this time led by the property stocks on concerns the government would seek to limit house prices. Losses were capped by positive sentiment flowing from the mainland as the Shanghai market closed at three-month highs.

The Hang Seng lost 135.69, or 0.63% to 21,479.08.

The banks were little moved, with Bank of Communications, Bank of China and ICBC all within 0.2% of the gain line.

HSBC lost 0.8%.

Property developer, Sung Hung Kai Properties shed 1.7%.

Swire Pacific lost 3.4%, while Media China slumped 7.3% after announcing a capital raising.

China Resources Cement Holdings rallied 2.1% after Morgan Stanley upgraded their outlook for the stock.

On IPO watch, the Chinese developer Evergrande Real Estate 34.3% on its first day of trading.

Local stocks lost ground Thursday after a strong start to the session. For the second consecutive day property trusts and consumer staple stocks led the slide, while resource stocks were also heavily sold. 

In economic news, Australia’s trade deficit totalled a smaller than expected $1.85 billion in September, up from $1.65 billion for August. According to the ABS, both increased 5% in September.

Myer and David Jones both hit the market with quarterly earnings reports, with Myer taking the honours with sales rising by 2.9% over the quarter to $717.1 million, while David Jones posted a slightly lower 2.2% rise in like-for-like sales to around $450 million. 

Total sales for Myer and David Jones rose 5.2% and 4.5% respectively.

At the end of the day, Myer shares were down 8c at $3.76, while David Jones had dropped 23c to $5.19.

At the close of trade, the All Ords had lost 28.4 to 4,519.2, while the ASX/200 shed 32.1 to 4,508.0. About 2.6 billion shares worth around $5 billion had changed hands.

The major miners were down with BHP Billiton 50c lower at $36.44 as safety concerns forced the suspension of construction at a new rail line in the Pilbara.

Rival Rio Tinto lost 84c to $62.59.

However, the home materials and chemical manufacturers were heavily sold dragging the Materials and Resources sector down 1.4%.

James Hardie and Boral lost 2.1% and 3.8% to $7.00 and $5.35 respectively.

Incitec Pivot fell 8c to $2.51. 

Steelmaker Onesteel shed 9c to $2.97, while Alumina fell 6.5c to $1.53. 

Energy stocks were stronger as the sector paced a rise in the price of crude back above US$80 per barrel. The sector added 0.1%.

In sector news, Sinopec Corp reached an agreement with Exxon Mobil to buy 2 million tonnes of liquefied natural gas annually from the PNG LNG Project.

Woodside Petroleum added 18c to $47.40 and Origin gained 16c to $15.95.

Among the banks, ANZ lost 66c to $22.07 as it traded ex-dividend today. The other big banks were in positive territory with CBA up 48c, or 0.9% to $51.85.

The Banks and Financials sector shed 0.5%.

The insurers remained mixed throughout the day. QBE rose 24c to $21.50.

Macquarie Group reversed early gains to finish 44c lower at $47.65.

The Property Trusts sector was down 2%. Westfield, which represents around 1/3 of the sector, lost 14c to $11.86, while GPT fell 2.5c to 57.5c.

Among other Consumer Discretionary stocks Newscorp put on 2.5% as it posted double digit profit growth for the last quarter to just over $1 billion.

The company's shares climbed 38c to $15.53.

Seven jumped 4.6% to $6.40.

Gamers were mixed with Crown down 3c to $8.15. The island of Macau reported a 42% jump in gambling revenue in October from the same month a year ago.

West Australian News was hit by profit-taking following a couple of strong sessions for the stock. Its shares shed 19c to $7.81.

The sector dipped 0.1%.

The Consumer Staples sector slumped 1.3%. Wesfarmers shed 57c, or 2.1% to $26.20 and Woolworths lost 24c to $27.66.

Industrials were mixed, with the sector up 0.5% overall.

Brambles dropped 24c to $6.93 as the company announced the appointment of Greg Hayes as its new CFO. 

Meanwhile, Leightons slid 17c to $33.81.

Transurban shares jumped 19.4% to $5.24 after rejecting a $6 billion takeover bid from two Canadian Pension Funds.

Telstra retreated 6c to $3.17. The broader Telecommunications sector lost 2%.

Around the region, the Nikkei 225 shed 125.3 to 9,719.1, while the Straits Times Index lost 13.2 to 2,635.5. Across the Tasman, the NZSE50 dipped 22.2 to 3,144.5. The Hang Seng weakened 196.5 to 21,418.3.

Spot gold was trading at US$1087.00 per ounce, and the Aussie was buying US$0.9057.

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Transurban rejects takeover bid
Transurban said it has received and rejected an incomplete, highly conditional and non-binding joint proposal from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan. The company said, if implemented, the proposal would involve a change of control of the Transurban Group through a scheme of arrangement.

At the end of the day, Transurban shares were up 85c to $5.24.

David Jones sales up 2.2% in 1Q
David Jones reported sales revenue of $452.1m for the period 26 July to 24 October, up 2.2% from total sales of $442.3 million in the equivalent 2008 quarter. The retailer said that there were positive factors from the first quarter trading which augurs well for the Christmas trading season.

By the close, David Jones shares were trading down 23c to $5.19.

News Corp first quarter profit up 11%
News Corporation reported an 11% increase in first quarter net profit to US$571m versus the previous corresponding period. The media company said first quarter consolidated operating income increased 9% in the same period to US$1.04 billion.

At the finish, New Corp shares were up 38c to $15.53.

Leighton positive about future
Leighton Holdings said that the 2010 financial year has started well for the company with total revenue for the first quarter to 30 September 2009 up 10% to $4.5bn. The company said it had generated profit after tax (unaudited) of $131m, an increase of 25% on the prior first quarter.

By the close, Leighton shares were down 17c to $33.81.

Myer 1Q sales climb 5.2%
Myer reported sales revenue for the quarter to the 24 October of $717.1m, up 5.2% from the 2008 quarter. Like-for-like sales grew at 4.5%, including the company’s refurbished stores.

At the final whistle, Myer shares were down 8c to $3.76.

FIRB approves Chinese stake in Centrex
Centrex Metals said that the Foreign Investment Review Board had given the green light for Wuhan Iron & Steel to take a 60% stake in iron ore rights in five of Centrex’s iron mineral tenements in South Australia. Under the deal, WISCO would pay $186 million for the rights to the tenements, as well as 15% of the issued equity in the Aussie miner.

At the end of trading, Centrex shares were up 7c to 71c.

RCI receives competing offer
Rocklands Richfield announced that its board has determined that Chinese commercial coke producer Meijin Energy Group’s recent takeover proposal is superior to the Jindal Proposal offered in September. Earlier this week Meijin proposed to acquire 100% of the shares in RCI at an offer price of 52c cash per share.

By the finish, Rocklands Richfield shares were up 5c to 39c.

Transurban Group (TCL) said it has received and rejected an incomplete, highly conditional and non-binding joint proposal from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan. The company said, if implemented, the proposal would involve a change of control of the Transurban Group through a scheme of arrangement.

Transurban said its board remains willing to engage on bona fide proposals which provide appropriate value and certainty to security holders in a change of control transaction.

“Security holders should further note that the Board expressed as recently as October 27 2009 at the AGM that it has significant confidence in Transurban Group’s performance and long-term prospects,” the company said.

“The fundamentals of Transurban’s business remain very sound, particularly against the backdrop of uncertain global economic times.”

As at 1453 AEDT, Transurban shares were up 86c to $5.25.

Kingsgate Consolidated Limited (KCN) said it had identified a new 20 square kilometre gold mineralised project area, called Suwan in central Thailand, beneath shallow cover. The gold miner said the discovery has the potential to provide future ore feed for the Chatree gold mine as satellite open pits. Kingsgate said drilling to date has shown a large low grade gold mineralised system with some high-grade gold veins. The company added that four main sites have been selected for Reverse Circulation drilling.

Galaxy Resources Limited (GXY) said it has secured Mining Approval from the Department of Mines and Petroleum for its Mt Cattlin Spodumene Project in Western Australia. The lithium producer said the approval marks the final stage of pre-development for the project, which the company said effectively enabled it to commence mining and production in Q3 2010. Galaxy said it is scheduled to commence construction of the project including earthworks and the minerals processing plant in the second week of this month.

Coeur d’Alene Mines Corporation (CXC) announced an approximate 40% increase in silver and gold reserves at its Palmarejo silver and gold mine in Chihuahua, Mexico to a total of 88.6 million ounces of silver and 1.1 million ounces of gold. The company said the upgrade was based on its ongoing drilling at the nearby Guadalupe deposit. Coeur d’Alene said the 25.8 million ounces of new silver reserves and 315,000 ounces of new gold reserves represent the initial underground ore reserves at Guadalupe, located about six kilometres from the current Palmarejo mine and processing facilities. The company said it plans to continue drilling at Guadalupe and anticipates commencement of underground development of Guadalupe’s reserves in 2010. Coeur d’Alene said ore from Guadalupe would then be expected to begin contributing to Palmarejo’s silver and gold production in 2011.

Western Areas Limited (WSA) announced an increase in the Probable Ore Reserve within its T4 and T5 deposits at the Flying Fox Mine. The nickel sulphide miner said the Total Probable Ore Reserves at Flying Fox are now approximately 1.38 million tonnes at an average grade of 5.2% nickel containing 71,860 tonnes nickel. Western Areas said the T5 Probable Ore Reserve has increased to 1,044,300 tonnes at an average grade of 5.6% nickel containing approximately 58,820 tonnes of nickel from 843,000 tonnes at 5.9% containing 49,500 tonnes. Meanwhile, the T4 Probable Ore Reserve has increased to 298,700 tonnes at an average grade of 3.9% nickel containing approximately 11,730 tonnes of nickel from 247,400 tonnes at 2.4% containing 6,480 tonnes.

Gindalbie Metals Limited (GBG) said it received final Federal Government environment approval for its Karara Iron Ore Project in Western Australia. The company said the approval was the final major approval required to commence construction work on-site. Gindalbie said it commenced mobilisation of people and equipment on Monday morning and on-site clearing started on Wednesday. The company is targeting production of its first hematite ore in the first half of 2011 and the first magnetite concentrate by mid-2011.

Orion Petroleum Limited (OIP) and Gas2Grid (GGX) have entered an agreement whereby the two companies would merge. Under the agreement, shareholders would receive one Orion share for every 2.25 Gas2Grid shares held.

The local share market jumped out of the box following modest gains on Wall Street overnight, before drifting lower throughout the morning to be 0.4% lower by lunch. In choppy trade materials stocks and consumer staples weighed the market, while energy stocks capped losses.

Myer and David Jones both hit the market with quarterly earnings reports, with Myer taking the honours with sales rising by 2.9% over the quarter to $717.1 million, while David Jones posted a slightly lower 2.2% rise in like-for-like sales to around $450 million. 

Total sales for Myer and David Jones rose 5.2% and 4.5% respectively.

At lunch, Myer shares were down 2c at $3.82, while David Jones had dipped 7c to $5.35.

For the market at noon, the All Ords had lost 7.5 to 4,540.1, while the ASX/200 shed 11.3 to 4,528.8. About 1.2 billion shares worth around $2 billion had changed hands.

The major miners were largely unchanged with BHP Billiton down 9c to $36.85, while Rio Tinto edged 2c higher to $63.45.

However, the home materials and chemical manufacturers were heavily sold dragging the Materials and Resources sector down 0.5%.

Orica shed 21c to $22.24 and Incitec Pivot lost 3c to $2.56. 

James Hardie and Boral lost 0.8% and 1.1% to $7.09 and $5.50 respectively.

Energy stocks were stronger as the sector paced a rise in the price of crude back above US$80 per barrel. The sector added 1%. Woodside Petroleum jumped 81c to $48.03.

Among the banks ANZ lost 55c to $22.18 as it traded ex-dividend today. The other big banks were stronger with CBA up 72c, or 1.4% to $52.09. NAB added 35c to $28.50. 

The Banks and Financials sector shed 0.4%.

The insurers were mixed. QBE rose 10c to $21.36.

Macquarie Group added 1c to sit at $48.10.

The Property Trusts sector was down 1.7%. Westfield, which represents around 1/3 of the sector, lost 10c to $11.90, while Stockland dipped 7c to $3.67.

Among other Consumer Discretionary stocks Newscorp spiked 4.4% as it posted double digit profit growth for the last quarter to just over $1 billion.

Its shares climbed 67c to $15.82.

Gamers were mixed with Crown up just 6c to $8.24. The island of Macau reported a 42% jump in gambling revenue in October from the same month a year ago.

West Australian News was hit by profit-taking following a couple of strong sessions for the stock. The Consumer Discretionary rose 0.3%.

The Consumer Staples sector slumped 1%. Wesfarmers shed 36c, or 1.3% to $26.41 and Woolworths lost 16c to $27.74.

Industrials were mixed, with the sector up 1.1% overall.

Brambles lost 12c to $7.05. Meanwhile, Leightons, by market capitalisation virtually the same size as Brambles, added 7c to $34.05.

Transurban shares jumped 17.8% after rejecting a $6 billion takeover bid from two Canadian Pension Funds.

Telstra retreated 3c to $3.20. The broader Telecommunications sector lost 0.8%.

Around the region, the Nikkei 225 shed 82.8 to 9,761.5, while the Straits Times Index lost 7.6 to 2,641.1. Across the Tasman, the NZSE50 dipped 8.7 to 3,158.0.

Spot gold was trading at US$1089.12 per ounce, and the Aussie was buying US$0.9086.

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David Jones sales up 2.2% in 1Q
David Jones reported sales revenue of $452.1m for the period 26 July to 24 October, up 2.2% from total sales of $442.3 million in the equivalent 2008 quarter. The retailer said that there were positive factors from the first quarter trading which augurs well for the Christmas trading season.

At noon, David Jones shares were trading down 11c to $5.31.

News Corp first quarter profit up 11%
News Corporation reported an 11% increase in first quarter net profit to US$571m versus the previous corresponding period. The media company said first quarter consolidated operating income increased 9% in the same period to US$1.04 billion.

At lunch, New Corp shares were up 65c to $15.80.

Leighton positive about future
Leighton Holdings said that the 2010 financial year has started well for the company with total revenue for the first quarter to 30 September 2009 up 10% to $4.5bn. The company said it had generated profit after tax (unaudited) of $131m, an increase of 25% on the prior first quarter.

At midday, Leighton shares were down 1c to $33.97.

Myer 1Q sales climb 5.2%
Myer reported sales revenue for the quarter to the 24 October of $717.1m, up 5.2% from the 2008 quarter. Like-for-like sales grew at 4.5%, including the company’s refurbished stores.

At lunchtime, Myer shares were down 2c to $3.82.

FIRB approves Chinese stake in Centrex
Centrex Metals said that the Foreign Investment Review Board had given the green light for Wuhan Iron & Steel to take a 60% stake in iron ore rights in five of Centrex’s iron mineral tenements in South Australia. Under the deal, WISCO would pay $186 million for the rights to the tenements, as well as 15% of the issued equity in the Aussie miner.

At noon, Centrex shares were up 6c to 70c.

RCI receives competing offer
Rocklands Richfield announced that its board has determined that Chinese commercial coke producer Meijin Energy Group’s recent takeover proposal is superior to the Jindal Proposal offered in September. Earlier this week Meijin proposed to acquire 100% of the shares in RCI at an offer price of 52c cash per share.

At midday, Rocklands Richfield shares were up 4c to 38c.

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Market Watch by egoli

Brambles Limited (BXB) announced the appointment of Greg Hayes as the company’s new chief financial officer. The company said Mr Hayes would replace current Brambles CFO, Liz Doherty, effective as of 16 November 2009. Brambles said Mr Hayes has spent the last three years as CEO of privately owned diversified contractor Tenix Group. Previously Mr Hayes had spent four years as CFO of The Australian Gas Light Company, and held positions with Westfield and Southcorp.