AMP Limited (AMP):
AMP shares have crashed to a six-year low after yesterday’s overwhelming shareholder vote against its remuneration report and the likelihood of further brand damage from the fees-for-no-advice scandal. In late morning trade, the stock (AMP) was trading at $3.735, down 22.5c or 5.68 per cent, nearing the firm’s record low of $3.52 which it stuck in the depths of the GFC. Macquarie analysts contributed to the malaise, forecasting in a note this morning that the wealth management could suffer $35 billion in outflows over the next five years, representing 27 per cent of its assets under management. In a further note, Citi said brand damage would be the most likely factor to impact performance in the coming months.
GrainCorp Limited (GNC):
GrainCorp has affirmed its full-year earnings guidance despite booking a first-half profit plunge due to reduced grain production in eastern Australia. Unveiling a net profit after tax of $36.1 million for the six months to March 31, down 59.9 per cent compared to the same period a year prior, GrainCorp (GNC) chief executive Mark Palmquist said crop production in the east of the country fell about 40 per cent in the first half, compared to last year’s near-record harvest. The company declared a fully-franked interim dividend of 8 cents per share. Dry conditions across most of the east Australian grain belt have continued into the second half and continue to present serious challenges for grain growers, with dry-sowing occurring in many areas, the company said. But despite the tough conditions, GrainCorp maintained its full-year earnings guidance to be within the range of $240m and $265m.
Orora Ltd (ORA):
Paper and packaging company Orora says it expects to deliver higher earnings for the full year, thanks to solid US business conditions and US corporate tax cuts. Subject to global conditions, the packaging and recycling firm said earnings for the full year will be higher, after delivering earnings before interest and tax of $302.3 million in the 12 months to June 30, last year. Orora (ORA) said in a business update on Friday, an improving pipeline of business in its Orora Visual segment, a continuation of conditions in its North American business, boosted by US corporate tax breaks will deliver higher earnings and allow the company to continue to drive organic growth and invest in innovation.
Perpetual Limited (PPT):
Perpetual has pulled off a major coup, with the appointment of Rob Adams — currently Asia Pacific Chairman of Janus Henderson — as CEO. Mr Adams will start as managing director and chief executive on 24 September 2018. Perpetual’s (PPT) current CEO Geoff Lloyd will step down on June 30, 2018 but remain available for a transition period. Perpetual shares jumped 4.8 per cent to a three-week high of $42.55 in early trading. Having served on the Global Investment Management Committee of Janus Henderson, Mr Adams has three decades of local and global experience in funds management, financial advice and fiduciary services.
REA Group Limited (REA):
REA Group has raised revenue by 20 per cent and boosted earnings by 21 per cent strength on the back of strong demand in the residential and commercial businesses and the inclusion of the financial services unit. The operator of realestate.com.au recorded revenue of $592 million, and earnings before interest, tax, depreciation and amortisation of $345m for the nine months ended March 31. On a quarterly basis, revenue climbed 19 per cent higher to $186m, and EBITDA amounted to $102m — up 19 per cent. The financial services business launched in the first half and was not included in the prior comparative period. It remains on track to deliver the previous financial year 2018 revenue guidance of between $26m and $30m and EBITDA in the range of $7m to $11m, REA said in a statement to the stock market. Higher demand for realestate.com.au’s premium advertising products bucked lower listing volumes in Australia due to the timing of Easter.
Rio Tinto Limited (RIO):
Rio Tinto's push to reduce the carbon intensity of the aluminium sector has taken a step forward with the creation of a new venture with rival producer Alcoa and tech giant Apple that will seek to produce the metal with zero emissions. Rio's flagship aluminium smelters in Canada are powered by emissions-free hydro-electricity, and the company has in recent years sought to spruik the smelters' relatively low carbon footprint through the "RenewAL" brand of aluminium, which is claimed to generate about 66 per cent fewer emissions than the average aluminium smelter. But the company is now aiming for aluminium products that are entirely emissions-free, and will devote $C55 million ($57.4 million) to a new joint venture company with Alcoa and Apple named Elysis. Alcoa has developed the core technology, which is protected by patent, that Elysis will seek to build upon to create a commercially viable product by 2024. The new venture was launched in Canada on Friday morning by Canadian Prime Minister Justin Trudeau, and it will start life with $C188 million in funding once contributions from Apple and the local governments are included.
(Source: AIMS)
AMP shares have crashed to a six-year low after yesterday’s overwhelming shareholder vote against its remuneration report and the likelihood of further brand damage from the fees-for-no-advice scandal. In late morning trade, the stock (AMP) was trading at $3.735, down 22.5c or 5.68 per cent, nearing the firm’s record low of $3.52 which it stuck in the depths of the GFC. Macquarie analysts contributed to the malaise, forecasting in a note this morning that the wealth management could suffer $35 billion in outflows over the next five years, representing 27 per cent of its assets under management. In a further note, Citi said brand damage would be the most likely factor to impact performance in the coming months.
GrainCorp Limited (GNC):
GrainCorp has affirmed its full-year earnings guidance despite booking a first-half profit plunge due to reduced grain production in eastern Australia. Unveiling a net profit after tax of $36.1 million for the six months to March 31, down 59.9 per cent compared to the same period a year prior, GrainCorp (GNC) chief executive Mark Palmquist said crop production in the east of the country fell about 40 per cent in the first half, compared to last year’s near-record harvest. The company declared a fully-franked interim dividend of 8 cents per share. Dry conditions across most of the east Australian grain belt have continued into the second half and continue to present serious challenges for grain growers, with dry-sowing occurring in many areas, the company said. But despite the tough conditions, GrainCorp maintained its full-year earnings guidance to be within the range of $240m and $265m.
Orora Ltd (ORA):
Paper and packaging company Orora says it expects to deliver higher earnings for the full year, thanks to solid US business conditions and US corporate tax cuts. Subject to global conditions, the packaging and recycling firm said earnings for the full year will be higher, after delivering earnings before interest and tax of $302.3 million in the 12 months to June 30, last year. Orora (ORA) said in a business update on Friday, an improving pipeline of business in its Orora Visual segment, a continuation of conditions in its North American business, boosted by US corporate tax breaks will deliver higher earnings and allow the company to continue to drive organic growth and invest in innovation.
Perpetual Limited (PPT):
Perpetual has pulled off a major coup, with the appointment of Rob Adams — currently Asia Pacific Chairman of Janus Henderson — as CEO. Mr Adams will start as managing director and chief executive on 24 September 2018. Perpetual’s (PPT) current CEO Geoff Lloyd will step down on June 30, 2018 but remain available for a transition period. Perpetual shares jumped 4.8 per cent to a three-week high of $42.55 in early trading. Having served on the Global Investment Management Committee of Janus Henderson, Mr Adams has three decades of local and global experience in funds management, financial advice and fiduciary services.
REA Group Limited (REA):
REA Group has raised revenue by 20 per cent and boosted earnings by 21 per cent strength on the back of strong demand in the residential and commercial businesses and the inclusion of the financial services unit. The operator of realestate.com.au recorded revenue of $592 million, and earnings before interest, tax, depreciation and amortisation of $345m for the nine months ended March 31. On a quarterly basis, revenue climbed 19 per cent higher to $186m, and EBITDA amounted to $102m — up 19 per cent. The financial services business launched in the first half and was not included in the prior comparative period. It remains on track to deliver the previous financial year 2018 revenue guidance of between $26m and $30m and EBITDA in the range of $7m to $11m, REA said in a statement to the stock market. Higher demand for realestate.com.au’s premium advertising products bucked lower listing volumes in Australia due to the timing of Easter.
Rio Tinto Limited (RIO):
Rio Tinto's push to reduce the carbon intensity of the aluminium sector has taken a step forward with the creation of a new venture with rival producer Alcoa and tech giant Apple that will seek to produce the metal with zero emissions. Rio's flagship aluminium smelters in Canada are powered by emissions-free hydro-electricity, and the company has in recent years sought to spruik the smelters' relatively low carbon footprint through the "RenewAL" brand of aluminium, which is claimed to generate about 66 per cent fewer emissions than the average aluminium smelter. But the company is now aiming for aluminium products that are entirely emissions-free, and will devote $C55 million ($57.4 million) to a new joint venture company with Alcoa and Apple named Elysis. Alcoa has developed the core technology, which is protected by patent, that Elysis will seek to build upon to create a commercially viable product by 2024. The new venture was launched in Canada on Friday morning by Canadian Prime Minister Justin Trudeau, and it will start life with $C188 million in funding once contributions from Apple and the local governments are included.
(Source: AIMS)
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