BHP Billiton Limited (BHP):
BHP Billiton’s credit metrics have improved to a level that could soon warrant a ratings upgrade, with the miner only being held back by the performance of its petroleum division. Barely one year after being downgraded and threatened with further downgrades by Standard & Poor’s and Moody’s Investors Service, BHP’s balance sheet is looking much healthier, thanks to rebounding commodity prices and a focus on debt reduction. The company generated $US7.7 billion of operating cash flow in the six months to December 31, and reduced its net debt by $US6 billion over the same period.
Brambles Limited (BXB):
Shares of logistics company Brambles are trading 30 per cent below their 52-week high and have taken two bad spills since January. On January 23 Brambles issued a profit downgrade because of disappointing results in its North American pallets business. Outgoing chief executive Tom Gorman said that first-half sales growth in constant currency terms would come in at 5 per cent, well short of the guidance of 7 to 9 per cent. Underlying profit growth was expected to be even worse, coming in at 3 per cent, against previous guidance of 9 per cent to 11 per cent.
Cimic Group Limited (CIM):
The corporate adjudicator, the Takeovers Panel, has declined to look into construction giant CIMIC’s claim that takeover target Macmahon Holdings’ target statement was misleading and deceptive. Mining services provider Macmahon is subject to a takeover bid from CIMIC that closes on March 9.
Downer EDI Limited (DOW):
Downer EDI has inked a deal to buy Hawkins, one of New Zealand’s largest privately owned infrastructure and construction businesses. The purchase, from New Zealand’s McConnell family, will be funded through existing debt facilities and be earnings accretive in its first year, the company said. It did not specify the value of the agreement. “This acquisition will complement our existing engineering, construction and maintenance capabilities while also providing a platform for growth,” said Downer chief executive Grant Fenn.
Lendlease Group (LLC):
Urban regeneration powerhouse Lendlease has the green light to develop the last stretch of its Docklands precinct in Melbourne, with a fivetower, $1.2 billion project. Known as Collins Wharf, it is the final section in the vast Victoria Harbour precinct where Lendlease has already built residential towers, office buildings and a library. With approval from Planning Minister Richard Wynne, Collins Wharf will include five towers – each no more than 85 metres high – comprising about 1500 apartments.
Origin Energy Limited (ORG):
Origin Energy’s chief executive Frank Calabria has held out the prospect of running a formal process for the sale of the ‘‘NewCo’’ oil and gas assets, amid speculation that the proposed initial public offering was never seriously envisaged. Mr Calabria reiterated that Origin had received expressions of interest for the conventional oil and gas assets but said a decision on whether to run a formal sales process for the whole package had yet to be made. ‘‘We haven’t commenced a formal trade sale process at this point but we will make the best decision in the interests of our shareholders,’’ Mr Calabria told reporters after his first public speech as chief executive, where he called for a price to be placed on carbon and other measures to restore security of supply and bring an end to the price rises that are hurting business.
Sigma Pharmaceutical Limited (SIP):
Sigma Pharmaceuticals chief executive Mark Hooper says the wholesaler is pursuing opportunities to provide healthcare outside of retail chemists, such as in patients’ homes. In a bid to spur Sigma’s repositioning to take advantage of an ageing population and a shift in how chronic disease will be treated in future, the Melbourne based company will propose changing its name to Sigma Healthcare. The new name will be unveiled on Wednesday on the Gold Coast at the annual retail conference for Amcal and Guardian chemists, two of the brands Sigma exclusively supplies. Mr Hooper told The Australian Financial Review a new tagline of ‘‘connecting health solutions’’ left open the door to move into broad areas of health provision, including technology, and would provide ‘‘a clearer picture of where we see the business today and where we see it evolving in the future’’.
Sydney Airport Holdings Limited (SYD):
Airports have hit back at the competition watchdog’s calls for regulation, claiming the Australian Competition and Consumer Commission has ‘‘a disturbing lack of insight’’ into how airport infrastructure is funded and managed. The ACCC, which monitors airports but does not regulate them, will push for regulatory powers to limit price increases when the Productivity Commission next reviews airport regulation in 2018. The ACCC’s annual monitoring report, released on Monday, found airports were charging airlines more – boosting aeronautical revenues by about $1.57 billion over the past decade – and earning high profit margins on car parking fees. Sydney Airport’s parking margins run at 73.1 per cent, while Brisbane Airport’s are 66.1 per cent.
Westfield Corporation (WFD):
Global shopping centre owner and manager Westfield Corporation has been downgraded by Credit Suisse because of ‘‘frequent disappointments’’ and expectations of limited nearterm earnings growth. Australia’s trophy global shopping centre owner and manager Westfield Corporation has been downgraded by Credit Suisse because of ‘‘frequent disappointments’’ and expectations of limited near-term earnings growth. The $18.3 billion Westfield, which owns malls outside Australia, delivered a softer earnings guidance than some analysts had expected in its recent financial results. The threat of online retailers such as Amazon on physical malls is only part of the challenge for traditional mall owners.
Woolworths Limited (WOW):
After reversing a slide in supermarket sales, Woolworths is hoping to rebuild bridges with suppliers and win more shoppers by giving food and grocery manufacturers unprecedented access to customer data. Woolworths is aiming to sign up most of its 3000-odd suppliers to a new Supplier Connect program by the end of June after launching a successful pilot scheme with a dozen partners last October. Under the program, suppliers receive free monthly scorecards and commercial reports that analyse and measure their performance against rival brands in various categories based on sales, returns, service, market share and customer loyalty. After reversing a slide in supermarket sales, Woolworths is hoping to rebuild bridges with suppliers and win more shoppers by giving food and grocery manufacturers unprecedented access to customer data.
(Source: AIMS)
BHP Billiton’s credit metrics have improved to a level that could soon warrant a ratings upgrade, with the miner only being held back by the performance of its petroleum division. Barely one year after being downgraded and threatened with further downgrades by Standard & Poor’s and Moody’s Investors Service, BHP’s balance sheet is looking much healthier, thanks to rebounding commodity prices and a focus on debt reduction. The company generated $US7.7 billion of operating cash flow in the six months to December 31, and reduced its net debt by $US6 billion over the same period.
Brambles Limited (BXB):
Shares of logistics company Brambles are trading 30 per cent below their 52-week high and have taken two bad spills since January. On January 23 Brambles issued a profit downgrade because of disappointing results in its North American pallets business. Outgoing chief executive Tom Gorman said that first-half sales growth in constant currency terms would come in at 5 per cent, well short of the guidance of 7 to 9 per cent. Underlying profit growth was expected to be even worse, coming in at 3 per cent, against previous guidance of 9 per cent to 11 per cent.
Cimic Group Limited (CIM):
The corporate adjudicator, the Takeovers Panel, has declined to look into construction giant CIMIC’s claim that takeover target Macmahon Holdings’ target statement was misleading and deceptive. Mining services provider Macmahon is subject to a takeover bid from CIMIC that closes on March 9.
Downer EDI Limited (DOW):
Downer EDI has inked a deal to buy Hawkins, one of New Zealand’s largest privately owned infrastructure and construction businesses. The purchase, from New Zealand’s McConnell family, will be funded through existing debt facilities and be earnings accretive in its first year, the company said. It did not specify the value of the agreement. “This acquisition will complement our existing engineering, construction and maintenance capabilities while also providing a platform for growth,” said Downer chief executive Grant Fenn.
Lendlease Group (LLC):
Urban regeneration powerhouse Lendlease has the green light to develop the last stretch of its Docklands precinct in Melbourne, with a fivetower, $1.2 billion project. Known as Collins Wharf, it is the final section in the vast Victoria Harbour precinct where Lendlease has already built residential towers, office buildings and a library. With approval from Planning Minister Richard Wynne, Collins Wharf will include five towers – each no more than 85 metres high – comprising about 1500 apartments.
Origin Energy Limited (ORG):
Origin Energy’s chief executive Frank Calabria has held out the prospect of running a formal process for the sale of the ‘‘NewCo’’ oil and gas assets, amid speculation that the proposed initial public offering was never seriously envisaged. Mr Calabria reiterated that Origin had received expressions of interest for the conventional oil and gas assets but said a decision on whether to run a formal sales process for the whole package had yet to be made. ‘‘We haven’t commenced a formal trade sale process at this point but we will make the best decision in the interests of our shareholders,’’ Mr Calabria told reporters after his first public speech as chief executive, where he called for a price to be placed on carbon and other measures to restore security of supply and bring an end to the price rises that are hurting business.
Sigma Pharmaceutical Limited (SIP):
Sigma Pharmaceuticals chief executive Mark Hooper says the wholesaler is pursuing opportunities to provide healthcare outside of retail chemists, such as in patients’ homes. In a bid to spur Sigma’s repositioning to take advantage of an ageing population and a shift in how chronic disease will be treated in future, the Melbourne based company will propose changing its name to Sigma Healthcare. The new name will be unveiled on Wednesday on the Gold Coast at the annual retail conference for Amcal and Guardian chemists, two of the brands Sigma exclusively supplies. Mr Hooper told The Australian Financial Review a new tagline of ‘‘connecting health solutions’’ left open the door to move into broad areas of health provision, including technology, and would provide ‘‘a clearer picture of where we see the business today and where we see it evolving in the future’’.
Sydney Airport Holdings Limited (SYD):
Airports have hit back at the competition watchdog’s calls for regulation, claiming the Australian Competition and Consumer Commission has ‘‘a disturbing lack of insight’’ into how airport infrastructure is funded and managed. The ACCC, which monitors airports but does not regulate them, will push for regulatory powers to limit price increases when the Productivity Commission next reviews airport regulation in 2018. The ACCC’s annual monitoring report, released on Monday, found airports were charging airlines more – boosting aeronautical revenues by about $1.57 billion over the past decade – and earning high profit margins on car parking fees. Sydney Airport’s parking margins run at 73.1 per cent, while Brisbane Airport’s are 66.1 per cent.
Westfield Corporation (WFD):
Global shopping centre owner and manager Westfield Corporation has been downgraded by Credit Suisse because of ‘‘frequent disappointments’’ and expectations of limited nearterm earnings growth. Australia’s trophy global shopping centre owner and manager Westfield Corporation has been downgraded by Credit Suisse because of ‘‘frequent disappointments’’ and expectations of limited near-term earnings growth. The $18.3 billion Westfield, which owns malls outside Australia, delivered a softer earnings guidance than some analysts had expected in its recent financial results. The threat of online retailers such as Amazon on physical malls is only part of the challenge for traditional mall owners.
Woolworths Limited (WOW):
After reversing a slide in supermarket sales, Woolworths is hoping to rebuild bridges with suppliers and win more shoppers by giving food and grocery manufacturers unprecedented access to customer data. Woolworths is aiming to sign up most of its 3000-odd suppliers to a new Supplier Connect program by the end of June after launching a successful pilot scheme with a dozen partners last October. Under the program, suppliers receive free monthly scorecards and commercial reports that analyse and measure their performance against rival brands in various categories based on sales, returns, service, market share and customer loyalty. After reversing a slide in supermarket sales, Woolworths is hoping to rebuild bridges with suppliers and win more shoppers by giving food and grocery manufacturers unprecedented access to customer data.
(Source: AIMS)
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