Business News

Professor Clive Palmer, one of the richest men in Australia has recently declared that he is considering purchasing the nickel assets owned by BHP Billiton (BHP) to strengthen up an expansion program of Yabulu nickel refinery which is located in Queensland. Companies that are owned by Clive Palmer bought the refinery today in an undisclosed price which Professor Palmer claimed to be less than $2 billion.

A lawsuit was filed by the Australian Competition and Consumer Commission (ACCC) yesterday against Cabcharge Australia (CAB), a company that is operated by the Sydney Taxi operator Reg Kermode. In the lawsuit ACCC has accused Cabcharge for misusing its market power in an attempt to eliminate its competitors from the market.

Lihir Gold (LGL) has recorded $109.3 million profit for the year 2008. Analysts on average were expecting Lihir, whose main asset is the Lihir gold mine in Papua New Guinea, to report 2008 net profit of $122.13 million, based on Reuters Estimates, against a $24 million loss in 2007. Lihir Gold, the second largest gold mining company said second-half sales rose 64% to $468.9 million from $286.7 million, a year ago. Net profit rose 229.0% to $73.7 million compared to net profit of $22.4 million, a year ago.

Adelaide Brighton’s (ABC) net profit goes up by 6.1%. The company projected weakening levels of demand for cement during 2009 driven by the decline in commercial and residential construction activity across all markets. Revenue for the year to December 2008 rose 15.1% to $1.022 billion, although the company has warned the year ahead would be marked by tougher economic conditions with construction activity to decline by as much as 20%.

United Group (UGL) has posted a strong first half result with profit jumping 26 per cent to 65 million dollars. The company reported a 26% increase in EBIT to $110.4 million, while first-half operating cash-flow was $46.7 million. UGL Resources EBIT rose 37% and UGL Services posted a 7% increase in EBIT. UGL said gearing (net debt to net debt plus equity) was 31% at 31 December 2008 and that it had zero drawn debt maturing until the 2011 financial year.

China Minmetals Corp., China's largest metals trading company, agreed to pay 2.6 billion Australian dollars in cash for Melbourne-based copper producer OZ Minerals (OZL). The board of the debt-laden miner decided that the offer was "in the best interest of Oz Minerals' shareholders". Coming just days after Aluminum Corp. of China said it will invest $19.5 billion in Rio Tinto Group, easing the Anglo-Australian miner's heavy debt burden, the offer underscores China's determination to clinch access to offshore mining resources.

Newcrest Mining (NCM) has posted a 16% jump in half-year underlying earnings, boosted by higher gold prices, but said it was under pressure from rising costs and lower copper prices. The company’s first half profit has lifted to $154 million from a loss in the prior corresponding period, and said it was in a strong position in a weak economy. The profit was up from an $8.1 million loss in the first half of fiscal 2008.

Commonwealth Bank of Australia (CBA) released its 1H09 reports yesterday. The bank posted a 16 per cent drop in first-half profit as bad corporate debts linked to the global financial crisis hit the bottom line. Bad debts soared nearly five-fold to more $1.5-billion. As flagged in Commonwealth's surprise profit upgrade earlier this month, the bank's operating performance was sound, highlighted by a 20 per cent increase in banking income due to fee rises and volume and market share gains.

Coca-Cola Amatil (CCL) has announced a 10 per cent rise in profit t404 million after taxes. Coca-Cola Amatil also said it expected to maintain dividend payments within the 70 percent to 80 percent range for 2009. The dividend was at 22 cents in 2008, a 71 percent payout ratio. Full-year profit of $404.3 million was in line with analysts expectations and was helped by new products and continuing hot summer weather.

JB Hi-Fi (JBH) records a 46.8% rise in sales in its New Zealand stores for the first half of the financial year. Revenue rose 28 percent to $1.26 billion for the half year, the company reported. Comparable store growth for the period was 11.1 per cent after currency adjustments with both Australia and New Zealand recording 11.3% growth.