ANZ Banking Group (ANZ)：
ANZ’s full-year cash profit has lifted 18 per cent, in line with analyst expectations, as chief executive Shayne Elliott flagged that the bank may soon return capital to shareholders in the form of a buyback. For the year to September 30, ANZ booked a cash profit of $6.94 billion, while net profit rose 12 per cent to $6. 41bn.As it posted its full-year results, Mr Elliott said the bank didn’t want to sit on “lazy capital” and signalled that recent divestments could see shareholders rewarded. The lender declared a final dividend of 80c a share, bringing the full-year dividend to $1.60 a share, in line with last year’s corresponding number.Net interest margin was down 8 basis points year-on-year, and flat on the first half. Return on equity increased 159 bps to 11.9 per cent, and earnings per share lifted 17 per cent to 237.1c.
Blackmores Ltd (BKL)：
Vitamins company Blackmores has scrapped its infant formula joint venture business with Bega Cheese after poor sales, and cut back on discount rebates to big customers in its core vitamins business to try and smooth out volatility with uniform global pricing now in place. Blackmores chief executive Richard Henfrey, who took over from long-serving boss Christine Holgate in August, said it had been a mutual decision by the two companies to scrap the underperforming joint venture. It had been announced with much much fanfare in late 2015 but has been a big disappointment, having suffered losses of $14 million in 2016-17. He said Blackmores would still be selling infant formula products under its own Blackmores brand but conceded it would be only a small part of its operations.
Bega Cheese Ltd (BGA)：
Bega Cheese has confirmed it is not a potential buyer of troubled dairy processor Murray Goulburn. Bega was reportedly considering a takeover of Australia's largest milk processor, but said on Thursday it is no longer a potential purchaser, and it has no current plans to raise capital. Chairman Barry Irvin said Bega continues to maintain a strong balance sheet and believes there are a number of potential opportunities in dairy and food. Shares are lower by 0.8 per cent.
Fortescue Metals Group Ltd (FMG)：
Fortescue Metals Group chief executive Nev Power says it is "really hard" to predict how long the wider spread in prices for high-grade and low-grade iron ore will persist, because it depends on how quickly Chinese steel mills respond to government intervention .Mr Power conceded the iron ore producer had underestimated the extent and duration of the discounting, which has persisted for almost 12 months, but remained adamant the dynamic would eventually correct. Earlier this year Mr Power said the larger discounts on lower-grade products produced by Fortescue and a number of other local miners would be short-lived. As a result, it lowered its price realisation guidance for the full year to between 70 and 75 per cent of the index, down from July guidance of 75 to 80 per cent and substantially lower than the 85 to 90 per cent realisation the miner has historically achieved.
JB Hi-Fi Ltd (JBH):
JB Hi-Fi reaffirmed its forecast for 21 per cent sales growth in 2018 even though momentum slowed in September and October after a strong start to the new year. Chief executive Richard Murray told the annual meeting in Melbourne on Thursday that total sales at JB Hi-Fi stores had risen 6.2 per cent in the year to date, compared with growth of 8.8 per cent in July and 14.3 per cent in the year ago period.JB Hi-Fi's samestore sales rose 3.2 per cent in the year to date, compared with 5.8 per cent in July and 10 per cent in the year-ago period. JB Hi-Fi shares fell 3 per cent to $22.82 in early trade on Thursday, taking losses this year to 18 per cent. Citigroup analyst Bryan Raymond said same-store sales growth at JB Hi-Fi was well below his forecast of 5.5 per cent and implied growth of just 2.2 per cent between August and October 22. However, he acknowledged that JB Hi-Fi was cycling 10 per cent growth in the year-ago period.
Qantas Airways Ltd (QAN):
Qantas is one of the worst performers this morning, recently trading down 2.7 per cent. It said earlier that it expects firsthalf earnings to rise by as much as 11.5 per cent after recovering resources lifted demand for domestic travel but warned revenue growth would slow in the second half. Chief executive Alan Joyce said competition on international routes would intensify in the second half while fuel costs would be higher than last year. Conditions in the domestic market improved as the resources market stabilised and the impact of political uncertainty after the 2016 federal election the previous year. Stiff competition on international routes eased in the first-half but is expected to ramp up in the second-half of the year. Qantas's international capacity will increase 5 per cent in the first-half as Qantas expands into Asia. Full-year fuel costs are expected to rise to $3.21 billion compared to $3.04 billion a year ago.
QBE Insurance Group Ltd (QBE):
QBE Insurance Group's venture capital arm has made the first investment from its US$50 million insurtech fund, putting money into a US-based artificial intelligence company which the company says will enable it to launch new products more quickly. The $15 billion global insurer said QBE Ventures had closed its first investment into RiskGenius, a machine learning business, for an undisclosed amount. "The RiskGenius product will provide a platform for building better products and better meeting our customers' needs. We've now signed a multi-year commercial agreement and plan on implementing the RiskGenius platform across all our business units in North America during the first half of 2018," said Mr James. In March, QBE said it would plough "at least" US$50 million into partnerships with insurtech companies across four different countries with plans to make pricing improvements and get better insights into customer buying habits.
Rio Tinto Ltd (RIO):
Australia's corporate watchdog has signalled it will take legal action against Rio Tinto and its executives over suspected frauds involving the miner's botched Mozambique investment. Australian Securities and Investments Commission chairman Greg Medcraft told Senate Estimates on Thursday the regulator was considering all enforcement options against Rio Tinto and its executives. Last week the US Securities Exchange Commission launched civil fraud action against Rio Tinto, its former chief executive Tom Albanese and former chief financial officer Guy Elliott over the miner's failed Mozambique coal project. Britain’s Financial Conduct Authority has already secured a £24 million ($39 million) penalty against Rio Tinto as part of its investigation. ASIC commissioner John Price, who is in charge of ASIC's corporate governance department, said the Australian regulator had been working closely with its counterparts in the US and the UK in regard to the investigation.
(Source: AIMS)
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