Commonwealth Bank of Australia (CBA):
Australia’s biggest bank, CBA, is expected to cut executive pay again this year but is resisting calls for more senior staff to be sacked in the wake of a damning report into failures of culture, accountability and governance exposed during Austrac’s moneylaundering investigation. The Australian Prudential Regulation Authority imposed a $1 billion capital penalty and a court-enforceable agreement to implement 35 changes recommended by a high-powered panel that found CBA’s long record of huge profits led to a “dulling of the senses within the board” to growing non-financial risks. CBA chairwoman Catherine Livingstone admitted the report was “upfront and confronting” but would be followed in full, as the company strived to restore a reputation battered by years of scandals. CBA’s market value has fallen by $13bn since the Turnbull government announced the royal commission. The big four banks and AMP combined have shed $28.5bn in value. Scott Morrison said he expected CBA board members and executives to resign, adding that the report should send a warning to other banks and companies.
Fairfax Media Limited (FXJ):
Fairfax Media chief executive Greg Hywood has promised to continue with cost-cutting measures, while defending the company’s strategy after a decline in revenue. Group revenues fell 1 per cent in the first 17 weeks for the second half of fiscal 2018 compared with the previous corresponding period, Mr Hywood said in a trading update today. The results were dragged down by the media company’s metro and community newspaper divisions, with Australian Metro Media — publisher of titles including The Sydney Morning Herald and The Age — down about 2 per cent and Australian Community Media down about 9 per cent. The company’s New Zealand publishing business Stuff suffered a revenue decline of about 8 per cent, including currency impact. But property listings business Domain, which was partially spun-off by Fairfax last year, grew its revenue by 13 per cent, underpinned by a 21 per cent boost in digital revenue. And its radio business Macquarie Media increased revenue by about 4 per cent. Despite the overall decline in revenue, Fairfax (FXJ) shares rose 4.25 cents, or six per cent, to 75.25 cents at 11.30am (AEST).
JB Hi-Fi Limited (JBH):
Australian electronics retailer JB Hi-Fi has lowered its expectations for net profit this fiscal year due to challenging conditions in the home-appliance market and unfavorable weather. The company, which said the challenges centered around its home goods chain The Good Guys, estimated group net profit would be around $230 million. It previously expected net profit between $235m and $240m. Despite the challenges at The Good Guys, the company reaffirmed its group sales guidance for the current fiscal year at $6.85 billion. It said its core JB Hi-Fi business continues to perform strongly and is in line with expectations. Some analysts and investors expect JB Hi-Fi to face further competition in the coming months and years as Amazon.com Inc. improves its retail offer in Australia. The e-commerce giant launched its full retail website in Australia in December.
Mineral Resources Limited (MIN):
Deal activity appears to be once again ramping up in Australia’s resources sector, with major Chinese and Japanese trading houses believed to be circling the $1.5 billion-plus stake in the Mineral Resources Wodgina Lithium project in Western Australia. It comes only weeks after the listed mining company embarked on a scrip takeover of WA’s Atlas Iron, which managed to fight off a collapse during the mining downturn through a recapitalisation by hedge funds. It is thought that groups such as Sumitomo, Mitsui, Gangfeng and Tianqi Lithium are all potential buyers of the stake in the lithium mine, while Posco could also be interested. Mineral Resources yesterday told the Australian Securities Exchange of its plans to divest a 49 per cent interest in the project as part of an offtake and partnering process. It has drafted in Macquarie Capital to advise on the process. It is estimated that the entire value of the project, 100km south of Port Hedland, is about $3.5bn. It is the largest hard-rock lithium deposit in the world.
Qantas Airways Limited (QAN):
Qantas Airways expects to post record underlying pre-tax profit for the full year, after posting strong revenue growth in the third quarter. The airline is eyeing underlying pre-tax profit of between $1.55 billion and $1.6bn after group revenue rose 7.5pc to $4.25bn in the third quarter. Qantas has also ordered six more Dreamliners from Boeing, allowing it to retire its six remaining Boeing 747s by the end of 2020. The new Dreamliners will begin arriving in the first half of fiscal year 2020 and will bring the Qantas-brand international Dreamliner fleet to 14. The airline announced the retirement of its five oldest 747s, from a fleet of 11, when it ordered its first eight Dreamliners in 2015. Qantas chief executive Alan Joyce said the Dreamliners are more efficient than the old 747s and that the planes will “open up new network options.” Qantas embarked on an aggressive cost-cutting program in recent years after a costly price war with main domestic rival Virgin Australia Holdings Ltd. ate into profits.
Rio Tinto Limited (RIO):
Rio Tinto chairman Simon Thompson admits the big miner’s Mozambique legal action from US and Australian authorities and a Guinea bribery probe from Britain has hit the company’s reputation. But he has denied the company did anything wrong in delaying an impairment on Mozambique, as alleged by the Australian Securities and Investments Commission yesterday. “We strenuously deny these allegations and will vigorously defend ourselves in court,” Mr Thompson said of both the ASIC action and a fraud case on the same matter brought by the US Securities and Exchanges Commission. Mr Thompson was speaking at Rio’s (RIO) annual general meeting in Melbourne this morning. “Over the past two years, our reputation has been called into question, by allegations of accounting fraud in relation to former assets in Mozambique and of bribery in Guinea,” he said.
Woolworths Group Ltd (WOW):
Woolworths has delivered a jump in third quarter sales as it continues its supermarket transformation. For the March quarter, Woolworths’ Australian food business delivered 4 per cent lift in Easter-adjusted comparable sales to nearly $9.6 billion, outpacing like-for-like third-quarter growth of 1.3 per cent at rival Coles. “We are pleased with the progress we are continuing to make against our key priorities as we pivot from turnaround to transformation. We remain energised by the number of opportunities we see to continue to improve our business,” said chief executive Brad Banducci. “Our focus for the remainder of fiscal year 2018 is on delivering consistently good shopping experiences across all stores and days of the week, embedding current strategic initiatives including ‘Simpler for Stores’ and continuing to improve our digital experience.” The supermarket giant (WOW) is progressing on its expensive turnaround project, pouring hundreds of millions of dollars into cutting prices and improving its in-store experience, which triggered a first-half cost rise of 4.8 per cent per square metre.
(Source：AIMS)
Australia’s biggest bank, CBA, is expected to cut executive pay again this year but is resisting calls for more senior staff to be sacked in the wake of a damning report into failures of culture, accountability and governance exposed during Austrac’s moneylaundering investigation. The Australian Prudential Regulation Authority imposed a $1 billion capital penalty and a court-enforceable agreement to implement 35 changes recommended by a high-powered panel that found CBA’s long record of huge profits led to a “dulling of the senses within the board” to growing non-financial risks. CBA chairwoman Catherine Livingstone admitted the report was “upfront and confronting” but would be followed in full, as the company strived to restore a reputation battered by years of scandals. CBA’s market value has fallen by $13bn since the Turnbull government announced the royal commission. The big four banks and AMP combined have shed $28.5bn in value. Scott Morrison said he expected CBA board members and executives to resign, adding that the report should send a warning to other banks and companies.
Fairfax Media Limited (FXJ):
Fairfax Media chief executive Greg Hywood has promised to continue with cost-cutting measures, while defending the company’s strategy after a decline in revenue. Group revenues fell 1 per cent in the first 17 weeks for the second half of fiscal 2018 compared with the previous corresponding period, Mr Hywood said in a trading update today. The results were dragged down by the media company’s metro and community newspaper divisions, with Australian Metro Media — publisher of titles including The Sydney Morning Herald and The Age — down about 2 per cent and Australian Community Media down about 9 per cent. The company’s New Zealand publishing business Stuff suffered a revenue decline of about 8 per cent, including currency impact. But property listings business Domain, which was partially spun-off by Fairfax last year, grew its revenue by 13 per cent, underpinned by a 21 per cent boost in digital revenue. And its radio business Macquarie Media increased revenue by about 4 per cent. Despite the overall decline in revenue, Fairfax (FXJ) shares rose 4.25 cents, or six per cent, to 75.25 cents at 11.30am (AEST).
JB Hi-Fi Limited (JBH):
Australian electronics retailer JB Hi-Fi has lowered its expectations for net profit this fiscal year due to challenging conditions in the home-appliance market and unfavorable weather. The company, which said the challenges centered around its home goods chain The Good Guys, estimated group net profit would be around $230 million. It previously expected net profit between $235m and $240m. Despite the challenges at The Good Guys, the company reaffirmed its group sales guidance for the current fiscal year at $6.85 billion. It said its core JB Hi-Fi business continues to perform strongly and is in line with expectations. Some analysts and investors expect JB Hi-Fi to face further competition in the coming months and years as Amazon.com Inc. improves its retail offer in Australia. The e-commerce giant launched its full retail website in Australia in December.
Mineral Resources Limited (MIN):
Deal activity appears to be once again ramping up in Australia’s resources sector, with major Chinese and Japanese trading houses believed to be circling the $1.5 billion-plus stake in the Mineral Resources Wodgina Lithium project in Western Australia. It comes only weeks after the listed mining company embarked on a scrip takeover of WA’s Atlas Iron, which managed to fight off a collapse during the mining downturn through a recapitalisation by hedge funds. It is thought that groups such as Sumitomo, Mitsui, Gangfeng and Tianqi Lithium are all potential buyers of the stake in the lithium mine, while Posco could also be interested. Mineral Resources yesterday told the Australian Securities Exchange of its plans to divest a 49 per cent interest in the project as part of an offtake and partnering process. It has drafted in Macquarie Capital to advise on the process. It is estimated that the entire value of the project, 100km south of Port Hedland, is about $3.5bn. It is the largest hard-rock lithium deposit in the world.
Qantas Airways Limited (QAN):
Qantas Airways expects to post record underlying pre-tax profit for the full year, after posting strong revenue growth in the third quarter. The airline is eyeing underlying pre-tax profit of between $1.55 billion and $1.6bn after group revenue rose 7.5pc to $4.25bn in the third quarter. Qantas has also ordered six more Dreamliners from Boeing, allowing it to retire its six remaining Boeing 747s by the end of 2020. The new Dreamliners will begin arriving in the first half of fiscal year 2020 and will bring the Qantas-brand international Dreamliner fleet to 14. The airline announced the retirement of its five oldest 747s, from a fleet of 11, when it ordered its first eight Dreamliners in 2015. Qantas chief executive Alan Joyce said the Dreamliners are more efficient than the old 747s and that the planes will “open up new network options.” Qantas embarked on an aggressive cost-cutting program in recent years after a costly price war with main domestic rival Virgin Australia Holdings Ltd. ate into profits.
Rio Tinto Limited (RIO):
Rio Tinto chairman Simon Thompson admits the big miner’s Mozambique legal action from US and Australian authorities and a Guinea bribery probe from Britain has hit the company’s reputation. But he has denied the company did anything wrong in delaying an impairment on Mozambique, as alleged by the Australian Securities and Investments Commission yesterday. “We strenuously deny these allegations and will vigorously defend ourselves in court,” Mr Thompson said of both the ASIC action and a fraud case on the same matter brought by the US Securities and Exchanges Commission. Mr Thompson was speaking at Rio’s (RIO) annual general meeting in Melbourne this morning. “Over the past two years, our reputation has been called into question, by allegations of accounting fraud in relation to former assets in Mozambique and of bribery in Guinea,” he said.
Woolworths Group Ltd (WOW):
Woolworths has delivered a jump in third quarter sales as it continues its supermarket transformation. For the March quarter, Woolworths’ Australian food business delivered 4 per cent lift in Easter-adjusted comparable sales to nearly $9.6 billion, outpacing like-for-like third-quarter growth of 1.3 per cent at rival Coles. “We are pleased with the progress we are continuing to make against our key priorities as we pivot from turnaround to transformation. We remain energised by the number of opportunities we see to continue to improve our business,” said chief executive Brad Banducci. “Our focus for the remainder of fiscal year 2018 is on delivering consistently good shopping experiences across all stores and days of the week, embedding current strategic initiatives including ‘Simpler for Stores’ and continuing to improve our digital experience.” The supermarket giant (WOW) is progressing on its expensive turnaround project, pouring hundreds of millions of dollars into cutting prices and improving its in-store experience, which triggered a first-half cost rise of 4.8 per cent per square metre.
(Source：AIMS)
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