Aurizon lifts div

Aurizon has boosted its dividend as it steps up cost cutting to offset lower growth rates for coal demand in Asia over the longer term.

By InvestSMART · 20 Aug 2013

By InvestSMART ·
20 Aug 2013

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Aurizon has boosted its dividend as it steps up cost cutting to offset lower growth rates for coal demand in Asia over the longer term. Australia's largest listed rail company posted a 1 per cent rise in full-year net profit to $447 million after booking the cost of 960 redundancies. More are expected in the year ahead. The company will pay a final dividend of 8.2¢ a share on September 23, up from 4.6¢ a year earlier.

Dexus dips

Dexus Property chief executive Darren Steinberg reported a fall of 0.7 per cent in profit to $365.4 million for the year to June 30, with a 12.1 per cent rise in annual distributions from 5.35¢ to 6¢. That payout included contributions from the group's unlisted trusts. Despite a weaker office market outlook, Mr Steinberg forecast earnings per security of 8.15¢, representing growth of 5.2 per cent. On the group's option over a 14.9 per cent stake in rival Commonwealth Property Office Fund, he said Dexus had no intention of making a takeover offer for CPA.

Challenger boom

Net profit has almost tripled at retirement funds company Challenger amid growing demand for annuities from baby boomers. Challenger on Monday recorded a net profit of $417 million for the latest year, with normalised profit up a more modest 4 per cent to $308.5 million. The company said it had received record flows into its annuities and funds management businesses, with total assets under management rising 34 per cent to $44.8 billion.

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Frequently Asked Questions about this Article…

What did Aurizon announce about its dividend and annual profit?

Aurizon lifted its final dividend to 8.2¢ a share (up from 4.6¢ a year earlier) and reported a 1% rise in full‑year net profit to $447 million, while booking the cost of 960 redundancies.

Why is Aurizon cutting costs and making redundancies?

Aurizon is stepping up cost‑cutting and booking redundancies to offset lower long‑term growth rates for coal demand in Asia, a key reason cited for restructuring and further cuts expected in the year ahead.

When will Aurizon pay the final dividend and how much will shareholders receive?

Aurizon’s final dividend of 8.2¢ a share is scheduled to be paid on September 23, an increase from 4.6¢ paid the previous year.

How did Dexus perform and what happened to its annual distributions?

Dexus reported a 0.7% fall in profit to $365.4 million for the year to June 30, while annual distributions rose 12.1% from 5.35¢ to 6¢, aided by contributions from the group’s unlisted trusts.

What is Dexus’s earnings per security forecast and is it planning a takeover of CPA?

Dexus forecast earnings per security of 8.15¢, representing 5.2% growth. Although it holds an option over a 14.9% stake in Commonwealth Property Office Fund (CPA), Dexus said it had no intention of making a takeover offer for CPA.

Why did Challenger’s profit jump and what drove the growth?

Challenger’s net profit almost tripled to $417 million, driven by record flows into its annuities and funds‑management businesses as baby boomers increased demand for annuities; normalised profit rose 4% to $308.5 million.

How much did Challenger’s assets under management grow?

Challenger’s total assets under management increased 34% to $44.8 billion, reflecting strong inflows into its annuities and funds‑management businesses.

What are the key takeaways for everyday investors from these company updates?

Key takeaways: Aurizon boosted its dividend despite booking large redundancy costs as it responds to weaker coal demand; Dexus lifted distributions even with a slight profit dip and remains cautious about the office market; and Challenger delivered strong profit and AUM growth on record annuity inflows—each development highlights different sector dynamics investors should watch.