AIA Group (AIA):
Australia’s largest life insurer, AIA Group, has developed its own policy and sent it to Josh Frydenberg and Chris Bowen to derail superannuation budget measures set to be voted on in the Senate this week. The attempt to intervene in the legislative process is part of a last-ditch effort to block government proposals that are designed to stop the erosion of retirement savings by restricting the charging of automatic life insurance fees on the accounts of young savers and establish a fee limit of 3 per cent on small balance accounts. In a letter sent to MPs and senators, obtained by The Australian, AIA Australia chief executive Damien Mu set out the goal of replacing the legislation with a package drawn up by the global insurance giant, which is based in Hong Kong.
Aurizon Holdings Ltd (AZJ) and K&S Corporation Ltd (KSC):
Logistics company K&S Corporation has settled a claim with Aurizon, which will see Aurizon paying $25 million to K&S Corporation without admission of liability. The dispute was over Aurizon's exit from its intermodal rail business about 11 months ago. The money is being counted as a gain for K&S in the 2017-18 year.
to stay in the job for at least the next calendar year as he guides the company to a more “agile” future and improved performance from the Olympic Dam mine. Mackenzie and chairman Ken MacKenzie are closely aligned and, while succession talk is always alive within the company, it seems that, barring unforeseen circumstances, it is not an issue for the foreseeable future. The internal candidates for the job — finance chief Peter Beaven and Australian boss Mike Henry — appear well settled. Some analysts report that interviews have already started for the top job, but company sources have rejected the talk, saying it’s not an issue for 2019. MacKenzie has now been effectively in the chair for 18 months — a time over which the company’s prospects have improved markedly, underlined by the soonerthan-expected US shale sale, which will see $US10.4 billion returned to shareholders.
Commonwealth Bank (CBA):
Commonwealth Bank will get 65 per cent of its energy from renewables starting in January after signing an agreement with the largest wind farm in New South Wales. Australia's largest bank says the 12-year purchasing agreement with Sapphire Wind Farm, in north-east NSW is a step toward going all-renewables by 2030. CBA has become the first Australian firm to commit to the global RE100 initiative, joining corporates including Apple, Bank of America, Coca-Cola, Nike, Sony and Starbucks in committing to source 100 per cent of their electricity from renewables by a specified year.
Downer Group (DOW):
Downer Group’s mining services division is believed to be subject to a potential management buyout, with equity backers currently being sought by parties close to the company to take the unit private. Documents have been sent out to parties by an organisation called CapRaise seeking expressions of interest for an investment via a management buyout. The document requests equity or debt worth between $500 million and $550m and asks for a minimum cheque of $20m. While Downer Mining is not named as the company involved, CapRaise describes the investment opportunity as a “major tier one mining services provider” and “one of Australia’s largest open-cut mining service contractors”, which analysts say can only be Downer Mining. Annual turnover is $1 billion and key customers include Rio Tinto, Glencore and BHP Billiton Mitsubishi Alliance and the business is described as “non-core to the owner and actionable in the near term”.
DuluxGroup Limited (DLX): DuluxGroup has reported 5.4 per cent lift in net profit after tax to $150.7 million for the year to September 30 on strength in the key Australian and New Zealand businesses. The company (DLX) announced a final dividend of 14 cents per share fully franked, up from 13.5c per share last year. The Dulux ANZ business delivered a 4.7 per cent lift in earnings before interest and tax, while earnings in the company’s other businesses, which includes the company’s UK business and Indonesian joint venture, dropped 5.3 per cent. Still, Dulux said that lead indicators in the key markets of Australia and New Zealand, which contribute about 70 per cent of group earnings, remain positive, and that fiscal year 2019 profit is expected to be higher than for 2018.
Incitec Pivot (IPL):
Incitec Pivot has fired a fresh warning over the future of its Gibson Island fertiliser plant and tips strong economic growth in North America to persist despite concerns over a potential US recession in 2020. The explosives and fertiliser maker said its Brisbane plant would be forced to shut by the end of 2019 unless a new gas deal could be struck, with the company already facing a $50 million cost hike this fiscal year. It has yet to secure any gas contract offers for the 2020-21 period and said it was now at the mercy of east coast suppliers. “Customers do things in their own time. Who knows when they’ll do it,” chief executive Jeanne Johns told The Australian. “We would expect maybe mid calendar year we may know something but it’s really the customers’ timeframe we’re working to.” As reported by The Australian last month, Incitec has failed to sign any new gas contracts to start in 2020, putting Gibson Island and the 450 jobs it supports into fresh turmoil. A surge in gas prices to three to four times higher than historical levels this summer may also force manufacturers and heavy industry to shutter operations, the competition watchdog warned last month.
Medibank Private Ltd (MPL): Australia’s largest health insurer, Medibank, is now targeting market share growth following a decade of declines, as it flags policyholder momentum - what has boosted its outlook. Medibank chairman Elizabeth Alexander told investors at today’s annual general meeting in Melbourne that 2018 had been a turning point for the company. “For the first time in a decade we have seen market share grow over a six-month period, complaints to the ombudsman fall and our service net promoter score improve,” she said. “These improvements have assisted Medibank in delivering against the milestones set out by the management team two years ago.”
Ruralco Holdings Ltd (RHL):
Despite the drought, Ruralco has beaten estimates and announced a 10 per cent increase in post-tax profit to $28.8 million for the full year ending September 30. Underlying earnings per share increased by just 0.3 per cent to 27.5 cents and it will pay a fully franked dividend of 6 cents per share. "The drought in many parts of the country this year has tested our strategy and reinforced the importance of building a diversified earnings base across our activities and geographies," chief executive Travis Dillon tells the market. Revenue for the year is up 5 per cent to $1.9 billion, with analysts expecting $1.88 billion. Underlying earnings are up 7 per cent to $70.1 million, with analysts expecting $67 million.
Seven West Media (SWM) : Seven West Media is increasing its cost savings as it prepares for a flat metro television advertising market this financial year, but has reiterated its annual earnings guidance. Seven (SWM) chief executive Tim Worner told shareholders at the media group’s annual meeting that it now expects net cost savings of $20-30 million for the 2019 financial year, up from its previous target of $10-20 million. “Overall we expect the metro TV ad market to be broadly flat in the financial year, but for Seven to increase share,” Mr Worner said in his speech to shareholders. Mr Worner said the launch of broadcast video-on-demand (BVOD) service 7Plus and the “rapid scaling of audience, revenue and EBIT on this platform in just 10 months has been outstanding”. The BVOD market continues to grow strongly, up 25 per cent in the first quarter from a year earlier, “with growth on 7Plus outpacing the market,” he said. “Seven Studios has also had a very strong start to the year with continued strong earnings growth and some new major commissions,” Mr Worner said. The company will continue to cut its debt pile in the 2019 financial year, he told shareholders. Seven shares were up 3.5 cents, or 4.8 per cent, to 76 cents in early trade.
（Source: AIMS）
Australia’s largest life insurer, AIA Group, has developed its own policy and sent it to Josh Frydenberg and Chris Bowen to derail superannuation budget measures set to be voted on in the Senate this week. The attempt to intervene in the legislative process is part of a last-ditch effort to block government proposals that are designed to stop the erosion of retirement savings by restricting the charging of automatic life insurance fees on the accounts of young savers and establish a fee limit of 3 per cent on small balance accounts. In a letter sent to MPs and senators, obtained by The Australian, AIA Australia chief executive Damien Mu set out the goal of replacing the legislation with a package drawn up by the global insurance giant, which is based in Hong Kong.
Aurizon Holdings Ltd (AZJ) and K&S Corporation Ltd (KSC):
Logistics company K&S Corporation has settled a claim with Aurizon, which will see Aurizon paying $25 million to K&S Corporation without admission of liability. The dispute was over Aurizon's exit from its intermodal rail business about 11 months ago. The money is being counted as a gain for K&S in the 2017-18 year.
to stay in the job for at least the next calendar year as he guides the company to a more “agile” future and improved performance from the Olympic Dam mine. Mackenzie and chairman Ken MacKenzie are closely aligned and, while succession talk is always alive within the company, it seems that, barring unforeseen circumstances, it is not an issue for the foreseeable future. The internal candidates for the job — finance chief Peter Beaven and Australian boss Mike Henry — appear well settled. Some analysts report that interviews have already started for the top job, but company sources have rejected the talk, saying it’s not an issue for 2019. MacKenzie has now been effectively in the chair for 18 months — a time over which the company’s prospects have improved markedly, underlined by the soonerthan-expected US shale sale, which will see $US10.4 billion returned to shareholders.
Commonwealth Bank (CBA):
Commonwealth Bank will get 65 per cent of its energy from renewables starting in January after signing an agreement with the largest wind farm in New South Wales. Australia's largest bank says the 12-year purchasing agreement with Sapphire Wind Farm, in north-east NSW is a step toward going all-renewables by 2030. CBA has become the first Australian firm to commit to the global RE100 initiative, joining corporates including Apple, Bank of America, Coca-Cola, Nike, Sony and Starbucks in committing to source 100 per cent of their electricity from renewables by a specified year.
Downer Group (DOW):
Downer Group’s mining services division is believed to be subject to a potential management buyout, with equity backers currently being sought by parties close to the company to take the unit private. Documents have been sent out to parties by an organisation called CapRaise seeking expressions of interest for an investment via a management buyout. The document requests equity or debt worth between $500 million and $550m and asks for a minimum cheque of $20m. While Downer Mining is not named as the company involved, CapRaise describes the investment opportunity as a “major tier one mining services provider” and “one of Australia’s largest open-cut mining service contractors”, which analysts say can only be Downer Mining. Annual turnover is $1 billion and key customers include Rio Tinto, Glencore and BHP Billiton Mitsubishi Alliance and the business is described as “non-core to the owner and actionable in the near term”.
DuluxGroup Limited (DLX): DuluxGroup has reported 5.4 per cent lift in net profit after tax to $150.7 million for the year to September 30 on strength in the key Australian and New Zealand businesses. The company (DLX) announced a final dividend of 14 cents per share fully franked, up from 13.5c per share last year. The Dulux ANZ business delivered a 4.7 per cent lift in earnings before interest and tax, while earnings in the company’s other businesses, which includes the company’s UK business and Indonesian joint venture, dropped 5.3 per cent. Still, Dulux said that lead indicators in the key markets of Australia and New Zealand, which contribute about 70 per cent of group earnings, remain positive, and that fiscal year 2019 profit is expected to be higher than for 2018.
Incitec Pivot (IPL):
Incitec Pivot has fired a fresh warning over the future of its Gibson Island fertiliser plant and tips strong economic growth in North America to persist despite concerns over a potential US recession in 2020. The explosives and fertiliser maker said its Brisbane plant would be forced to shut by the end of 2019 unless a new gas deal could be struck, with the company already facing a $50 million cost hike this fiscal year. It has yet to secure any gas contract offers for the 2020-21 period and said it was now at the mercy of east coast suppliers. “Customers do things in their own time. Who knows when they’ll do it,” chief executive Jeanne Johns told The Australian. “We would expect maybe mid calendar year we may know something but it’s really the customers’ timeframe we’re working to.” As reported by The Australian last month, Incitec has failed to sign any new gas contracts to start in 2020, putting Gibson Island and the 450 jobs it supports into fresh turmoil. A surge in gas prices to three to four times higher than historical levels this summer may also force manufacturers and heavy industry to shutter operations, the competition watchdog warned last month.
Medibank Private Ltd (MPL): Australia’s largest health insurer, Medibank, is now targeting market share growth following a decade of declines, as it flags policyholder momentum - what has boosted its outlook. Medibank chairman Elizabeth Alexander told investors at today’s annual general meeting in Melbourne that 2018 had been a turning point for the company. “For the first time in a decade we have seen market share grow over a six-month period, complaints to the ombudsman fall and our service net promoter score improve,” she said. “These improvements have assisted Medibank in delivering against the milestones set out by the management team two years ago.”
Ruralco Holdings Ltd (RHL):
Despite the drought, Ruralco has beaten estimates and announced a 10 per cent increase in post-tax profit to $28.8 million for the full year ending September 30. Underlying earnings per share increased by just 0.3 per cent to 27.5 cents and it will pay a fully franked dividend of 6 cents per share. "The drought in many parts of the country this year has tested our strategy and reinforced the importance of building a diversified earnings base across our activities and geographies," chief executive Travis Dillon tells the market. Revenue for the year is up 5 per cent to $1.9 billion, with analysts expecting $1.88 billion. Underlying earnings are up 7 per cent to $70.1 million, with analysts expecting $67 million.
Seven West Media (SWM) : Seven West Media is increasing its cost savings as it prepares for a flat metro television advertising market this financial year, but has reiterated its annual earnings guidance. Seven (SWM) chief executive Tim Worner told shareholders at the media group’s annual meeting that it now expects net cost savings of $20-30 million for the 2019 financial year, up from its previous target of $10-20 million. “Overall we expect the metro TV ad market to be broadly flat in the financial year, but for Seven to increase share,” Mr Worner said in his speech to shareholders. Mr Worner said the launch of broadcast video-on-demand (BVOD) service 7Plus and the “rapid scaling of audience, revenue and EBIT on this platform in just 10 months has been outstanding”. The BVOD market continues to grow strongly, up 25 per cent in the first quarter from a year earlier, “with growth on 7Plus outpacing the market,” he said. “Seven Studios has also had a very strong start to the year with continued strong earnings growth and some new major commissions,” Mr Worner said. The company will continue to cut its debt pile in the 2019 financial year, he told shareholders. Seven shares were up 3.5 cents, or 4.8 per cent, to 76 cents in early trade.
（Source: AIMS）
Latest comments