February 3, 2010
ARB Corporation Limited (ARP) said it finished an already strong first half of the year with record sales being achieved in both November and December 2009. As a result, the four-wheel drive accessories manufacturer and distributor advised that, based on unaudited management accounts, sales revenue has increased by 15.5% and net profit before tax is expected to be approximately $21 million for the six-month period.
ARB said favourable trading conditions were primarily a result of the government’s investment allowance incentives.
However, the company said earnings per share would be affected by the increase in the company’s issued capital as a result of a recent special dividend and associated underwritten dividend re-investment and bonus share plans.
“In addition, the Federal Government’s investment allowance incentives ceased on 31 December 2009 and this is expected to dampen demand for some of ARB’s products in the short term,” ARB said.
“Accordingly, the Board expects that ARB’s second half performance will be lower than the record interim result.”
The company said, nonetheless, it anticipates modest profit growth in the second half compared with the previous corresponding period.
ARB expects to release its first half result and dividend announcement on 17 February 2010.
As at 1055 AEDT, ARB shares were up 40c to $5.40.
February 3, 2010
Downer EDI Limited (DOW) said it has secured more than $750 million in new contract across its rail, resources, energy and infrastructure divisions.
Managing director and CEO Geoff Knox said the contracts added to a work-in-hand balance of over $16 billion.
“These wins reinforce Downer’s position as a leading provider of rail manufacturing; mechanical, electrical and instrumentation contracting; road maintenance and construction; transmission lines; and consulting services across the Asia Pacific region,” Mr Knox said.
“We have secured more than $400 million worth of contracts to deliver both standard and narrow gauge locomotives for coal haulage in New South Wales and Queensland as well as locomotives for iron ore haulage in the Pilbara,” Mr Knox said.
Mr Knox also highlighted the Works division had secured more than $160 million worth of contracts for clients in Australia, New Zealand and the Pacific Islands.
“The Engineering division has secured approximately $120 million worth of new contracts for major clients including TransGrid and we are buoyed by the significant increase in tendering opportunities emanating from the energy and power sectors during the past few months”, Mr Knox said.
At 1019 AEDT, Downer shares were up 1.1% to $8.19.
February 3, 2010
Last night Karoon Gas Australia Limited (KAR) confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.
The company said gas at Plover-B was produced to surface at a maximum rate of 850 standard cubic feet per day on a 1”choke.
Karoon said it interprets that higher flow rates are achievable based on the low permeability measured in the B sand core.
“Karoon’s interpretation of the restricted flow resulted in part from completion brine being present in the well, severely restricting gas flow to surface,” the company said.
”Liquids volumes were not measured due to the low gas rates.”
Karoon said preliminary compositional analysis shows high methane content, some associated heavier hydrocarbons and low CO2 levels.
Meanwhile, the company said it would now commence preparations to plug and abandon the well at the Montara Formation as previously advised upon the completion of well operations.
”Lack of suitable equipment at the well site directed at attempting to establish communication to the Montara reservoir has resulted in the decision to move to commence drilling in a new location," Karoon said.
As at 1008 AEDT, Karoon shares had slumped $1.86 to $4.80.
February 3, 2010
Reece Australia Limited (REH) this morning came out with the following announcement: normalised net earnings for the six months ended 31st December 2009 is expected to be in the order of 15% above the same period last year. The result has been achieved with flat sales growth and a reduction in the cost of doing business.
RHG Limited (RHG), formerly known as RAMS, has announced it will stop a range of court actions with UniCredit Bank and would no longer be payed indemnity payments. Previously the group said operating profit after tax would be in the range of $55 to $65 million, however following this decision and other business factors net operating profit after tax would be in the range $65 million to $75 million.
February 3, 2010
Reece Australia Limited (REH) this morning came out with the following announcement: normalised net earnings for the six months ended 31st December 2009 is expected to be in the order of 15% above the same period last year. The result has been achieved with flat sales growth and a reduction in the cost of doing business.
RHG Limited (RHG), formerly known as RAMS, has announced it will stop a range of court actions with UniCredit Bank and would no longer be payed indemnity payments. Previously the group said operating profit after tax would be in the range of $55 to $65 million, however following this decision and other business factors net operating profit after tax would be in the range $65 million to $75 million.
February 3, 2010
Myer Holdings Limited (MYR) reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.
Myer confirmed that it is on track to achieve pro forma full year prospectus EBIT of $261 million in FY10.
Quarter-by-quarter Myer said sales in last three months were flat overall and even lower over the busy Christmas period, while in the first quarter sales grew 5.2% while the government’s economic stimulus package was still effective.
CEO of Myer, Bernie Brookes said the company’s results were disappointing over the Christmas period.
“While sales in the December month were disappointing, the business performed very strongly in January and the Stocktake sale was a great success,” Mr Brookes said.
“Against a backdrop of unprecedented early and deep discounting in the retail sector in the run up to Christmas, we now expect to achieve growth in EBIT in excess of 10% for the first half, and a continuing improvement in EBIT to sales margin.”
At the close Wednesday, Myer shares were trading at $3.38 each, a 17.5% discount to the IPO price when the shares listed last November.
February 3, 2010
Myer Holdings Limited (MYR) reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.
Myer confirmed that it is on track to achieve pro forma full year prospectus EBIT of $261 million in FY10.
Quarter-by-quarter Myer said sales in last three months were flat overall and even lower over the busy Christmas period, while in the first quarter sales grew 5.2% while the government’s economic stimulus package was still effective.
CEO of Myer, Bernie Brookes said the company’s results were disappointing over the Christmas period.
“While sales in the December month were disappointing, the business performed very strongly in January and the Stocktake sale was a great success,” Mr Brookes said.
“Against a backdrop of unprecedented early and deep discounting in the retail sector in the run up to Christmas, we now expect to achieve growth in EBIT in excess of 10% for the first half, and a continuing improvement in EBIT to sales margin.”
At the close Wednesday, Myer shares were trading at $3.38 each, a 17.5% discount to the IPO price when the shares listed last November.
February 3, 2010
Asciano Limited (AIO) announced that it has executed a long term, take-or-pay contract with Macarthur Coal Limited (MCC) for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. Asciano said the agreement would generate revenues of approximately $250 million for the company.
Asciano said Macarthur related entities are now its largest coal haulage customer in Queensland with annualised tonnes in excess of 10 million.
CEO Mark Rowsthorn said the company had achieved its goal of securing contracts totalling 30 million tonnes by the end of 2010 and added that every contract signed to date would deliver returns at or above its internal benchmarks.
“With our first ten train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market”, Mr Rowsthorn said.
“The coal haulage opportunities presented by the northern and southern missing link infrastructure projects, as well as the development of the Surat and Galilee basins, are clearly next on our agenda.”
At the close of trade Wednesday, Asciano shares were trading at $1.75, while Macarthur Coal shares were trading at $10.00.
