AMP Ltd (AMP):
AMP is coming under intense pressure from major shareholders to split the $14.5 billion financial powerhouse into two companies as tensions between the company and investors near boiling point.The financial company’s investment banks UBS and Macquarie Capital are said to have been exploring a spin-off of AMP’s New Zealand operations and its life insurance division.But shareholders are fuming over the company’s decision not to proceed with the plans, as at least two of the major shareholders are calling for the resignation of chief executive Craig Meller and for the company to shelve its current strategy and instead proceed with the breakup plan.
BHP Billiton Ltd (BHP):
BHP Billiton says electric car production could boost global copper demand by half in the next 18 years, adding to the groundswell of excitement from miners and mining investors around the market potential of green technology.Speaking at London Metals Exchange week, BHP Minerals America boss Danny Malchuk (who oversees the giant Escondida copper mine in Chile) said new technologies and the push for cleaner energy could significantly add to already growing commodities demand.
Boral Ltd. (BLD):
Building materials supplier Boral painted a bullish picture for its Australian earnings following unusually dry weather in its fiscal first quarter, but said a string of natural disasters had posed a challenge to its North American business.Boral said it had benefited from “an unprecedented period of continuous, uninterrupted construction activity in New South Wales and Queensland” and financial results from both states in the three months through September had been well ahead of its initial hopes.As a result, the company said it now expected earnings from Australia in the 12 months through June would be above the previous year, including any gains from property sales. That was more upbeat than in August when management said earnings before interest and tax in fiscal 2018 would likely be broadly similar with fiscal 2017.
Genworth Mortgage Insurance Australia Ltd (GMA):
Genworth Mortgage Australia has seen its third-quarter profit drop by more than 31 per cent, with Australia's largest home loan insurer tipping higher ongoing delinquencies in regional parts of the country as mortgage stress hits hard. For the three months to September Genworth saw its net profit after tax drop to $32.1 million from $46.7 million a year ago. The company said the number of new insurance policies written dropped to $5.5 billion from $6.1 billion last year, while net earned premium dropped by 13.6 per cent to $100.1 million. The company had already reported a 35 per cent fall in first-half profit. Subdued wage growth combined with a low inflation environment is "perpetuating the instance of mortgage stress in certain regional economies," said the company in a statement.
Lend Lease Group (LLC):
Lendlease has struck a deal for the second stage of a major joint venture urban regeneration project in Milan as the group continues to expand its operations in Italy. The development and construction giant is undertaking the Milano Santa Giulia project with its partner Risanamento SpA Group.Lendlease chief executive for international operations, Dan Labbad, said the Milano Santa Giulia project was a major step forward for Lendlease in Europe. The company is targeting 17 global gateway cities for major integrated projects.
Myer Holdings Ltd (MYR)：
We all know Premier Investments has made it clear it "has no current intentions of making a takeover offer for Myer", but that does not mean investors and analysts have put it out of their minds. Macquarie analysts re-ran the numbers on Thursday morning and said an allscrip bid at $1 a share would be 2.2 per cent accretive to Premier Investments' earnings per share. Assuming $10 million a year synergies and 30 per cent cash/debt funding, Macquarie said a deal would be 12 per cent accretive to Premier's earnings. So while Macquarie reckons Premier's 10.8 per cent stake is likely strategic - given Premier's existing retail businesses - they said the potential for corporate activity would provide some support to Myer's share price. It comes after Myer unveiled its quarterly sales and strategy on Wednesday, which included new profit growth targets underpinned by cost cuts. Premier chairman Solomon Lew said the new targets and a drop in October quarter sales were proof that the two-year-old New Myer strategy had failed. Macquarie cut its Myer sales forecast by 2 per cent for the 2018 financial year and net profit expectations by 20 per cent.
National Australia Bank Ltd (NAB):
NAB delivered a “solid” underlying second-half FY result, according to Macquarie, however the bank’s forecast of 5- 8 per cent cost growth in FY18 surprised the investment bank’s analysts. “NAB threw a spanner in the works by providing guidance on expenses,” says Macquarie, “by bringing expenses forward, NAB will essentially spend an additional $1bn over the next 3 years vs. our current forecast.” This will likely to put ongoing pressure on capital and dividends.”NAB released its FY17 results earlier this morning, booking $6.64bn in cash profit over the period (vs. $6.67bn Bloomberg’s consensus estimate) and announcing a 99c-per-share final dividend in line with estimates.
Seven West Media Ltd (SWM):
Seven West Media chief executive Tim Worner has flagged $105 million of cost savings over the next two years, partly due to job cuts, and is confident the company can deliver a financial result in line with consensus forecasts, despite soft market conditions.At the company’s annual general meeting, Mr Worner said job cuts will deliver $25m in savings this year, adding to the $30m in cost savings already announced, to offset the step-up in AFL rights costs.A further $50m in cost savings will be realised in 2019 from the roll-off of major sports rights, he said.
Telstra Corporation Ltd. (TLS):
Telstra boss Andrew Penn has warned that the next three years are going to see things get worse for the telco as the combination of the National Broadband Network and TPG Telecom continue to hollow out the incumbent’s earnings.Speaking at Telstra’s investor day in Sydney, Mr Penn said that while Telstra was facing challenges on both the fixed and mobile fronts it had some solutions at hand to tackle the downward pressure.
(Source: AIMS)
AMP is coming under intense pressure from major shareholders to split the $14.5 billion financial powerhouse into two companies as tensions between the company and investors near boiling point.The financial company’s investment banks UBS and Macquarie Capital are said to have been exploring a spin-off of AMP’s New Zealand operations and its life insurance division.But shareholders are fuming over the company’s decision not to proceed with the plans, as at least two of the major shareholders are calling for the resignation of chief executive Craig Meller and for the company to shelve its current strategy and instead proceed with the breakup plan.
BHP Billiton Ltd (BHP):
BHP Billiton says electric car production could boost global copper demand by half in the next 18 years, adding to the groundswell of excitement from miners and mining investors around the market potential of green technology.Speaking at London Metals Exchange week, BHP Minerals America boss Danny Malchuk (who oversees the giant Escondida copper mine in Chile) said new technologies and the push for cleaner energy could significantly add to already growing commodities demand.
Boral Ltd. (BLD):
Building materials supplier Boral painted a bullish picture for its Australian earnings following unusually dry weather in its fiscal first quarter, but said a string of natural disasters had posed a challenge to its North American business.Boral said it had benefited from “an unprecedented period of continuous, uninterrupted construction activity in New South Wales and Queensland” and financial results from both states in the three months through September had been well ahead of its initial hopes.As a result, the company said it now expected earnings from Australia in the 12 months through June would be above the previous year, including any gains from property sales. That was more upbeat than in August when management said earnings before interest and tax in fiscal 2018 would likely be broadly similar with fiscal 2017.
Genworth Mortgage Insurance Australia Ltd (GMA):
Genworth Mortgage Australia has seen its third-quarter profit drop by more than 31 per cent, with Australia's largest home loan insurer tipping higher ongoing delinquencies in regional parts of the country as mortgage stress hits hard. For the three months to September Genworth saw its net profit after tax drop to $32.1 million from $46.7 million a year ago. The company said the number of new insurance policies written dropped to $5.5 billion from $6.1 billion last year, while net earned premium dropped by 13.6 per cent to $100.1 million. The company had already reported a 35 per cent fall in first-half profit. Subdued wage growth combined with a low inflation environment is "perpetuating the instance of mortgage stress in certain regional economies," said the company in a statement.
Lend Lease Group (LLC):
Lendlease has struck a deal for the second stage of a major joint venture urban regeneration project in Milan as the group continues to expand its operations in Italy. The development and construction giant is undertaking the Milano Santa Giulia project with its partner Risanamento SpA Group.Lendlease chief executive for international operations, Dan Labbad, said the Milano Santa Giulia project was a major step forward for Lendlease in Europe. The company is targeting 17 global gateway cities for major integrated projects.
Myer Holdings Ltd (MYR)：
We all know Premier Investments has made it clear it "has no current intentions of making a takeover offer for Myer", but that does not mean investors and analysts have put it out of their minds. Macquarie analysts re-ran the numbers on Thursday morning and said an allscrip bid at $1 a share would be 2.2 per cent accretive to Premier Investments' earnings per share. Assuming $10 million a year synergies and 30 per cent cash/debt funding, Macquarie said a deal would be 12 per cent accretive to Premier's earnings. So while Macquarie reckons Premier's 10.8 per cent stake is likely strategic - given Premier's existing retail businesses - they said the potential for corporate activity would provide some support to Myer's share price. It comes after Myer unveiled its quarterly sales and strategy on Wednesday, which included new profit growth targets underpinned by cost cuts. Premier chairman Solomon Lew said the new targets and a drop in October quarter sales were proof that the two-year-old New Myer strategy had failed. Macquarie cut its Myer sales forecast by 2 per cent for the 2018 financial year and net profit expectations by 20 per cent.
National Australia Bank Ltd (NAB):
NAB delivered a “solid” underlying second-half FY result, according to Macquarie, however the bank’s forecast of 5- 8 per cent cost growth in FY18 surprised the investment bank’s analysts. “NAB threw a spanner in the works by providing guidance on expenses,” says Macquarie, “by bringing expenses forward, NAB will essentially spend an additional $1bn over the next 3 years vs. our current forecast.” This will likely to put ongoing pressure on capital and dividends.”NAB released its FY17 results earlier this morning, booking $6.64bn in cash profit over the period (vs. $6.67bn Bloomberg’s consensus estimate) and announcing a 99c-per-share final dividend in line with estimates.
Seven West Media Ltd (SWM):
Seven West Media chief executive Tim Worner has flagged $105 million of cost savings over the next two years, partly due to job cuts, and is confident the company can deliver a financial result in line with consensus forecasts, despite soft market conditions.At the company’s annual general meeting, Mr Worner said job cuts will deliver $25m in savings this year, adding to the $30m in cost savings already announced, to offset the step-up in AFL rights costs.A further $50m in cost savings will be realised in 2019 from the roll-off of major sports rights, he said.
Telstra Corporation Ltd. (TLS):
Telstra boss Andrew Penn has warned that the next three years are going to see things get worse for the telco as the combination of the National Broadband Network and TPG Telecom continue to hollow out the incumbent’s earnings.Speaking at Telstra’s investor day in Sydney, Mr Penn said that while Telstra was facing challenges on both the fixed and mobile fronts it had some solutions at hand to tackle the downward pressure.
(Source: AIMS)
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