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Retail and shopping centre operator Westfield Group (WDC) this morning said its dividend for the six months to 31 December would be 47c per security. The company also announced a 47c per share dividend to 30 June, bringing the total dividend for 2009 to 94c per share, in range with previous guidance.

TPG Telecom Limited (TPM) said it would tap the market to raise around $70 million to help reduce debt following the proposed acquisition of PIPE Networks. At the same time the telco said earnings for the first five months of the year showed it was on track to meet previous full guidance of a post-tax profit of between $52 and $57 million. The company, for the first five months to 31 December 2009 reported a $22.5 million profit, from EBITDA of $65 million.

FlexiGroup Limited (FXL) said a positive tax ruling from its initial listing in 2006 meant $15 million would be added to the company’s bottom line when the it reports half-yearly results this month. The retail point-of-sale finance solution provider also said that it expected core FY10 post-tax profit would be in the range of $39 million to $49 million, up from $37 million to $39 million previously forecast.

Flexigroup said it would use the influx of funds to reduce the company’s debt levels.

Looking at the numbers, Flexigroup said the growth was spurred by a 30% climb in core business profitability to $19 million.

The company also reported strong volume growth with assets financed and transaction volumes increased by 44% and 70% respectively in the six months to 31 December, primarily as a result of the contribution from Certegy and BLiNK Mobile Broadband.

The company is due to report its half year results on 23 February, 2010.

At 1039 AEDT, Flexigroup shares were up 15.5c to $1.58.

Karoon Gas Australia Limited (KAR) shares were placed in trading halt at the request of the company as it prepares to compile an announcement in relation to the current testing program at the Browse Basin Acreage. The company said the trading halt would be put in place for the earlier of two trading days or when a market release is made.

Aquila Resources Limited (AQA) announced an upgrade to its Resource Statement for the company’s 50% owned Eagle Downs Hard Coking Coal project in the Bowen Basin, Central Queensland. The company increased its Measured Resource to 340Mt, with the project mining plan covering the payback period now classified 90% as Measured Resource. Aquila said Measured and Indicated Resources have significantly increased in the Harrow Creek Upper Seam to 518Mt, an increase on the previous Resource Statement and now cover 99% of “life of mine” mine plan for the Harrow Creek Upper Seam, which is the initial mining seam and covers the mine payback period. The company said a Feasibility Study proposes an underground longwall mine, producing initially up to 4.6Mtpa and then up to 8Mtpa of hard coking coal when the second longwall is installed.

Western Areas NL (WSA) said its Flying Fox operation produced 874 tonnes nickel in January, well up on the 730 tonnes nickel per month targeted for the March quarter. The company said the mine's production output was 22,200 tonnes at 3.9%. Western Areas also recorded a daily production record for the last three days of January with an average 80 tonnes of nickel mined per day at an estimated grade of 4.1% nickel. In CY09, the company exceeded its target for Flying Fox of 240,000t at 3.8% nickel by producing 244,367t at 3.8%.

Mincor Resources NL (MCR) expects its NPAT for the six months to December 31, 2009 to increase to approximately $14 million, based on a Profit Before Tax of approximately $19.9 million, and gross revenues of approximately $94 million. The nickel producer said the strong profit result compares to an after-tax loss of $22.7 million, on revenues of $100.4 million in the previous corresponding period. Mincor said last year’s result was marked by the global financial crisis and a collapse in the nickel price, while the company’s financial statements also included one-off non-cash impairment charges against certain of its mining assets.

Equinox Minerals Limited (EQN) announced that it has secured commitments from four leading commercial banks to provide a new corporate loan facility totalling US$400 million. The company said it would utilise the facility to repay its existing senior and subordinated project debt facilities provided to the company’s subsidiary Lumwana Mining Company in 2006 for the development of the Lumwana copper mine in Zambia. Equinox said the facility is subject to the execution of documentation and meeting conditions precedent.

Rio Tinto Limited (RIO) and Amcor Limited (AMC) announced the completion of the sale and acquisition of the Alcan Packaging businesses. Amcor said the US$1,948 million acquisition would provide it with leading global positions in the nominated strategic growth markets for flexible packaging and folding carton packaging for tobacco.

On 18 August 2009 Rio announced the receipt of a binding offer from Amcor for these businesses for a total consideration of US$2,025 million.

The company said today’s completion excludes the Alcan Packaging Medical Flexibles operations in the US, with the sale of these operations the subject of an ongoing detailed market review by the US Department of Justice.

Amcor said today’s purchase price represents a PBITDA multiple of 5.1 times based on earnings for the year ended 31 December 2009 of US$383 million.

The added that earnings for the Alcan Packaging businesses acquired increased in the second half of the 2009 calendar year.

Amcor’s managing director and CEO, Ken MacKenzie, said the businesses the company acquired are strongly aligned with its nominated growth segments, and provide the ability to substantially improve the value proposition for its customers.

“We are now focused on ensuring seamless integration of these businesses and on achieving the synergies and opportunities offered by this acquisition,” Mr MacKenzie said.

Rio Tinto chief financial officer, Guy Elliott, said the completion of the transaction is another significant step in the recapitalisation of the company’s balance sheet having completed divestments of US$5.6 billion since the start of 2009.

”These proceeds, together with the proceeds from our successful rights issues and strong underlying cash flows, provide us with the flexibility to pursue value adding investment opportunities as they arise,” Mr Elliott said.

At the close of trade yesterday, Amcor shares were trading at $5.86, while Rio Tinto shares were trading at $67.41.

UGL Limited (UGL) has been nominated by Melbourne Water Corporation as preferred construction partner, in joint venture with Baulderstone, for the planned upgrade of the Eastern Treatment Plant. UGL said its share of the $380 million project is about $120 million.

The company said JV would form an alliance with Black & Veatch, KBR and Melbourne Water in an effort to improve the quality of treated water discharged into Bass Strait.

UGL said the project is subject to a final round of Government approval and is expected to commence by the middle of this year, and be completed by the end of 2012 followed by a further two years of operations and maintenance services.

The company said along with the alliance partners it would provide design and construction services and also participate in the initial operation and maintenance phase of the project.

UGL’s managing director and CEO Richard Leupen said the company stands to benefit from increased spending in the infrastructure sector.

At the close of trade monday, UGL shares were trading at $12.86.

Directors' Interest Notices
01 February 10

All movements are percentage changes

A better than expected manufacturing report and Exxon Mobil’s earnings result sent Wall Street higher Monday. Investors also took the opportunity to buy back into the market following the recent heavy sell-off. 

In Washington, President Obama unveiled a US$3.8 trillion budget for 2011, while in manufacturing news, the Institute for Supply Management's manufacturing index rose from 54.9 in December to 58.4 in January. Forecasts were for an increase to 55.5. However, construction spending dropped 1.2%, down on 0.5% expected. 

In economic news, according to a Commerce Department report personal income increased a better than expected 0.4% in December. Forecasts were for a rise of 0.3% after a 0.5% increase in November.

Meanwhile, spending rose 0.2%, just below the 0.3% rise expected.

The Dow Jones rallied 118.20 points, or 1.17%, to 10,185.53, the S&P's 500 gained 15.32 points, or 1.43%, to 1,089.19 and the NASDAQ rose 23.85 points, or 1.11%, to 2,171.20.

Exxon Mobil gained 2.7% after the oil giant reported a quarterly profit that was 18% below a year earlier, however still above market estimates.

Chevron and ConocoPhillips put on 2% and 2.2% as the energy sector led the rally.

NYMEX light crude oil for February delivery added US$1.54 to settle at US$74.53 a barrel.

Financials were also stronger, with Goldman Sachs and Morgan Stanley among the best performers, up 3% and 2.9%.

Bank of America, Wells Fargo and JPMorgan were between 1.6% and 1.8% in the black.

Tech majors IBM and Hewlett Packard added 1.9% and 1.6%, while Apple closed 1.2% dearer. 

Aluminium producer Alcoa jumped 5% in broad based gain for the Dow. Boeing and Caterpillar advanced 1.8% and 1.3%.  

COMEX gold for February delivery rose US$21.30 to settle at US$1,104.30 an ounce.

European Markets

European stocks rallied on the back of stronger than expected manufacturing data locally and out of the US. Miners tracked metals prices higher, while financials were also stronger.

The UK benchmark FTSE 100 gained 58.89, or 1.14% to 5,247.41. The French CAC40 added 22.55, or 0.60% to 3,762.01, while Germany’s DAX put on 45.69, or 0.81% to 5,654.48.

Royal Bank of Scotland led banks higher, rallying 7.9%, on reports a number of companies are interested in its global card-payment processing unit. UK peers Lloyds and Barclays climbed 3.3% and 4.3%.

On the continent Deutsche Bank and BNP Paribas rose 2.9% and 1.4%.

Miners bounced off a couple of weeks of consistent falls. Anglo American, Xstrata and Antofagasta were between 2.5% and 3% higher at the close.

Aussie peers Rio Tinto and BHP Billiton advanced 2.7% and 1.6%.

German chemical maker Lanxess jumped 3.7% as it gave a bullish outlook for the year ahead and added that it was interested in acquisitions. 

French media and telecommunications company Vivendi lost 2.4% after being found guilty of misleading investors between 2000 and 2002 by a US court.

Japanese Markets

Japan’s Nikkei edged slightly higher on a mixed day for the market. While investors picked up stocks with bullish earnings, commodity stocks were heavily sold.

The Nikkei 225 added 6.98, or 0.07% to 10,205.02.

Mizuho Financial Group put on 1.7% after the bank reported a profit in the December quarter and reiterated its full-year forecast, which is above market estimates.

Mitsubishi UFJ Financial gained 1.1%.

Fanuc rallied 4.4% after the industrial robot maker raised its sales forecast for the year on Friday. 

Despite US regulators being satisfied with the Toyota’s plan for fixing an accelerator pedal problem, the automakers shares weakened 1.2%, adding to the slump over the past week.

Honda shed 2.5% as it announced a recall over a faulty window switch.

Trading houses Mitsui & Co and Mitsubishi Corp fell 2.9% and 2.2% due to the weakening commodity markets.

Inpex Corp lost 1.4% on falling oil prices.

Toshiba dropped 6% after the chipmaker retained an outlook below market consensus.

Hong Kong Markets

The Hong Kong economy made a modest recovery from recent selling as the government’s offer to provide a stimulus package aimed at the construction industry outweighed recent concerns over lending restrictions. Banks on the Hang Seng were stronger, however their Chinese mainland counterparts continued to struggle.

The Hang Seng climbed 121.76, or 0.61% to 20,243.75.

Bank of China and HSBC both put on 0.3%. ICBC rose 1.3%.

In wake of stimulus package aimed at promoting building in rural areas of China, China National Building Material Co, a cement maker, soared 11%.

China’s number two mobile carrier Unicom shares slumped 2.8% after saying profit in 2009 would be down 50% on the back of reduced income after an asset sale.

Larger rival, China Mobile was up 1.4%.

Volatile auto stocks rose, with Goldman Sachs backed Geely Automobiles tacking on 0.6%, while Warren Buffet’s BDY surged 4.3%.

In M&A news, TPV Technology Ltd., the world’s largest maker of computer monitors said it might receive a takeover bid from China Electronics Corp.

The Australian sharemarket retreated Monday afternoon as weaker than expected jobs data rattled investor confidence in the sustainability of economic growth. Energy stocks slumped, while resources were also heavily sold.

In a range of economic data out this morning, the chances of a rate rise when the RBA meets this month have shortened after the TD Securities inflation gauge rose 0.8% in January, its third consecutive monthly increase.

In employment news, the ANZ Bank monthly job advertisement survey revealed an 8.1% drop in the total number of jobs advertised in major metropolitan newspapers and on the internet in January. Job advertisments rose a revised 4.6% the previous month. 

Meanwhile the PMI, a measure of manufacturing, rose 2.5 points to 51 in January. The 50 point mark is the barrier between expansion and contraction. The growth was driven by a rise among construction materials and coal mining stocks the report concluded, while export levels also rose.

At the end of the day, the All Ords was down 52.1 to 4,544.8, while the ASX/200 shed 45.5 to 4,524.1. About 2.7 billion shares worth around $5.3 billion had changed hands.

The Materials and Resources sector lost 1.3% as most stocks reversed early gains. 

Heavyweight miner BHP Billiton slid 20c, or 0.5% to $39.20, while Rio Tinto shrugged off a strong start to the session to finish 59c lower at $67.41.

Newcrest weakened 58c, or 1.8% to $30.95, while Lihir Gold fell 6c, or 2.2% to $2.71.

Several mid-capped stocks, including Onesteel, Bluescope and Incitec Pivot were between 3.9% and 5.9% in the red.

Alumina bounced back from losses on Friday with a 2.5c, or 1.6% gain to $1.565.

Aspiring Greenland minerals miner Greenland Minerals and Energy forecast solid cash flow following a feasibility study of its Kvanefjeld Project, which the company said could become the world’s largest rare earth mine. Investors were clearly unimpressed with the news – its shares slumped 16.7%.

Energy stocks showed weakness with the sector trading 2.5% lower. Woodside shed 74c, or 1.7% to $41.59.

Santos dropped 39c, or 3% to $12.79. 

Uranium miner Extract Resources slumped 86c, or 10.9% to $7.04, while Arrow Energy fell 38c, or 9.7% to $3.55 after confirming it required additional funding due to taking on a greater role in the development of the Fisherman's Landing LNG project.

Smaller capped oil explorers were heavily sold with a number well over 5% below the gain line. 

The big four banks finished mainly lower. ANZ advanced 7c, or 0.3% to $21.80 and CBA slid 25c, or 0.5% to $52.98.

Westpac and NAB lost 33c, or 1.4% to $23.53 and 27c, or 1% to $26.10 respectively.

The broader Banks and Financials slid 0.9%.

The insurers were mostly lower, with QBE down 32c, or 1.4% to $22.60.

The Property Trusts sector dipped 1.7% on the back of a 2.4% fall in the price of Westfield shares to $12.34.

Mirvac lost 4c to $1.415.

The Industrials sector slipped 1%.

Brambles shed 17c, or 2.6% to $6.38 and Leighton was down just 20c, or 0.5% to $38.00.
 
Meanwhile, mining engineering firm AJ Lucas shares tumbled more than 2.5% to $3.16 after reporting ‘disappointing’ results over the last six months.

Macquarie Airports bucked the trend, rallying 2.2% to $2.84.
 
Retailers Harvey Norman and David Jones rose 0.8% and 0.6% to $3.71 and $4.79. The broader Consumer Discretionary sector rose 0.5%.

Among the gamers Aristocrat surged over 11% to $4.41 after the gaming machine maker upgraded its forecast profit.

Navitas shares hit all-time highs this morning before eventually close at $4.61 after the global education provider posted its fifth consecutive quarter of increasing revenue.

The media sector was mixed, though Newscorp put on 21c, or 1.3% to $16.72.

The Consumer Staples sector was down 0.8%, with all the majors trading below the gain line.

Woolworths lost 35c, or 1.4% to $25.51.

Telstra shed 2c, or 0.6% to $3.32. The Telecommunications sector weakened 0.4%.

Ramsay Health Care climbed 43c, or 3.7% to $11.90 after the company said its first half core NPAT result for to 31 December last year was expected to be around 32% to 34% higher than the previous corresponding period.

The Healthcare sector slid 0.2% due largely to heavyweight CSL closing 28c lower at $30.90.

Around the region, the Nikkei 225 dipped 8.5 to 10,189.6, while the Straits Times Index shed 8.4 to 2,737.0. Meanwhile, the NZSE50 fell 13.7 to 3,151.0. The Hang Seng lost 109.9 to 20,012.1.

Spot gold was trading at US$1,079.00 per ounce, and the Aussie was buying US$0.8818.

Ramsay expects profit up by a third
Ramsay Health Care said its first half core NPAT result for the six months to 31 December last year was expected to be around 32% to 34% higher than the previous corresponding period. The result, the company said, was driven by a better than expected result from businesses in the UK and Australia.

At the close, shares in Ramsay Healthcare were up 43c to $11.90.

Gindalbie, Sinosteel sign agreement
Gindalbie Metals and Sinosteel Midwest Corporation announced the signing of an agreement, which would provide a framework for sharing access to infrastructure and mine services for their neighbouring projects in Western Australia’s iron ore region. In a statement released by Gindalbie today it said the agreement, between Sinosteel Midwest and Gindalbie’s joint venture company Karara Mining Limited, is designed to enhance project economics and unlock synergies between the Karara Iron Ore Project and Sinosteel Midwest’s nearby Koolanooka/Blue Hills Project.

At the end of the day, Gindalbie shares were down 3.5c to 91.5c.

Aristocrat expecting $116m profit
Aristocrat Leisure shares surged over 10% at the open after saying it was expecting to record a post-tax profit of around $116m for the year to 31 December, ahead of analysts’ expectations. Despite this the company said it would report a loss, after abnormal items, after tax and minority interest for the year.

By the finish, Aristocrat shares were up 44c to $4.41.

Navitas profit continues to climb
Navitas, a global education provider, reported its fifth consecutive quarter of revenue growth to post a net profit of $27.5m, up 45% on the previous corresponding period. The company said it was now expecting full year EBITDA of between $94 million and $97 million, against last year’s $77.1 million.

By the close, Navitas shares were up 13c to $4.61.

AJ Lucas paints poor outlook
AJ Lucas Group said it was on track to report a ‘disappointing’ first half result when it reports to the market at the end of this month. The engineering firm said normalised EBITDA was set to be negative $18 million, though expected to swing to a $30 million EBITDA gain in the second half.

At the final whistle, AJ Lucas shares were down 8c to $3.16.

ESG beats 2009 reserves target
Eastern Star Gas upgraded its Proven and Probable gas reserves of the Narrabri Coal Seam Gas Project in New South Wales as at 31 December 2009 by 152 % to 1,520 PJ, of which ESG’s net interest is 988 PJ. The company also increased its 3P reserves by 43% to 2,797 PJ, of which ESG’s net interest is 1,818 PJ.

At the finish, ESG shares were down 2.5c to 75c.

GGG boasts worlds largest rare earths mine
Greenland Minerals and Energy completed its pre-feasibility study, confirming the Kvanefjeld Project has the potential to become one of the world’s largest rare earth mines. The study forecast a Net Present Value of US$2.18 billion and free cash flow of US$8.9 billion over the life of the project.

By the close Monday, Greenland Minerals and Energy shares were down 11c to 55c.

Argo sees improving conditions
Argo Investments reported a 14.7% decline in profit for the six months to 31 December 2009 to $82.7m. The investment company said the result was despite the value of stock rising from $2.9 billion to $3.9 billion by year end, though the company had previously flagged a fall of between 25% and 28%.

At the finish, Argo shares were down 7c to $6.65.

IMF full-year result remains in question
IMF (Australia) expects to announce a first half gross profit of about $11m with an after tax profit of about $8m. As announced in August, the company said its full year forecast was based upon four cases coming to a successful conclusion during the 2010 financial year and if this is the case expects to achieve the forecast $20 million – $24 million in after tax profits for FY10.

By the close, IMF shares were up 5.5c to $1.585.

Gindalbie Metals Limited (GBG) and Sinosteel Midwest Corporation announced the signing of an agreement, which would provide a framework for sharing access to infrastructure and mine services for their neighbouring projects in Western Australia’s iron ore region. In a statement released by Gindalbie today it said the agreement, between Sinosteel Midwest and Gindalbie’s joint venture company Karara Mining Limited, is designed to enhance project economics and unlock synergies between the Karara Iron Ore Project and Sinosteel Midwest’s nearby Koolanooka/Blue Hills Project.

The company said both groups would gain mutual benefits from the arrangement, which would reduce capital costs and lead to lower operating costs through economies of scale, especially in relation to ore transport.

Gindalbie’s managing director, Garret Dixon and Sinosteel Midwest’s chief operating officer, Giulio Casello, said they believed the agreement represents a genuine win-win for both groups given the close proximity of their iron ore operations.

“I look forward to building a mutually beneficial long term relationship with Sinosteel Midwest in the years ahead, and working closely with them as our neighbours to implement the key terms of this agreement,” Mr Dixon added.

As at 1334 AEDT, Gindalbie shares were up 0.5c to 95.5c.

Ramsay Health Care Limited (RHC) said its first half core NPAT result for the six months to 31 December last year was expected to be around 32% to 34% higher than the previous corresponding period. The result, the company said, was driven by a better than expected result from businesses in the UK and Australia.

The core result was not necessarily attributable to increased revenue, as much as cost cutting or ‘operational efficiencies’ the company noted.

”As a result, the core NPAT growth of the Group for the full 2010 fiscal year is, barring unforeseen circumstances, expected to be in the range of 18-20%, which compares to earlier core NPAT guidance of 12-14% growth over the prior year,” the company said.

”This upgraded core NPAT guidance of 18-20% growth would translate into core EPS growth of 10-12% for fiscal 2010.”

At 1332 AEDT, shares in Ramsay Healthcare were up 86c, or 7.5% to $12.33.