Briefs

TOLL ROADS

By InvestSMART · 13 Jul 2011

By InvestSMART ·
13 Jul 2011

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TOLL ROADS

Revenue jumps

Toll road owner Transurban Group's revenue in the three months to June was up by 13.9 per cent, capping a 10 per cent rise in revenue for the financial year. Transurban owns the Lane Cove Tunnel and the M2, M5, M7 and Eastern Distributor roads.

RESOURCES

Currency change

Fortescue Metals Group has started making transactions in China in renminbi in a step towards conducting more trade in the Asian superpower's currency. The company is looking at being paid in the local currency and using it to buy equipment.

INVESTMENTS

Looking to buy

A cashed-up Mirrabooka Investments expects a flat performance from corporate Australia this earnings season and is poised to make acquisitions while the sharemarket remains weak. The listed investments company posted an unaudited $10.9 million net profit for the 12 months to June 30, up 9.2 per cent on a year earlier.

RESOURCES

Alumina loses shine

Alumina Ltd has warned that higher energy and raw material costs and the strong dollar were continuing to take the shine off the earnings boost coming from improved prices. The Australian group was commenting on its earnings outlook following Monday's release in the US of second-quarter results of its partner, aluminium giant Alcoa.

PROPERTY

Australian appeal

Australian cities remain among the most affordable destinations for businesses operating in the Asia-Pacific region, despite the strength of the Australian dollar, according to business consultant Mercer in its 2011 Worldwide Cost of Living Survey.

ECONOMICS

Japan cuts forecast

The Bank of Japan yesterday lowered its real GDP growth forecast for the current fiscal year to 0.4 per cent from an earlier 0.6 per cent projection, owing to the devastation caused by the March 11 earthquake and tsunami.

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Frequently Asked Questions about this Article…

What caused Transurban Group's recent revenue rise and how large was the increase?

Transurban Group reported a 13.9% increase in revenue for the three months to June, contributing to a 10% rise in revenue for the full financial year. The company’s toll road operations, which include several major Sydney routes, drove that revenue performance.

Which toll roads does Transurban own that contribute to its revenue?

Transurban owns several key toll roads that help generate its revenue, including the Lane Cove Tunnel, the M2, M5, M7 and the Eastern Distributor.

Why is Fortescue Metals Group starting to transact in renminbi in China?

Fortescue Metals Group has begun making transactions in renminbi as a step toward doing more trade in China’s local currency. The company is exploring being paid in renminbi and using those funds to buy equipment locally.

How could Fortescue using renminbi affect its trade and equipment purchases?

By being paid in renminbi and transacting in the local currency, Fortescue can potentially simplify Chinese transactions and directly use the currency to buy equipment in China, reducing currency conversion steps.

What is Mirrabooka Investments' financial position and strategy heading into the earnings season?

Mirrabooka Investments reported an unaudited $10.9 million net profit for the 12 months to June 30, up 9.2% year-on-year. The listed investment company says it is cashed-up, expects a generally flat performance from corporate Australia this earnings season, and is poised to pursue acquisitions while the sharemarket remains weak.

Why has Alumina Ltd warned that improved prices might not fully boost earnings?

Alumina Ltd cautioned that higher energy and raw material costs, along with a strong Australian dollar, are reducing the positive impact of improved aluminium prices on its earnings. The company made the comments following second-quarter results released by partner Alcoa in the US.

Are Australian cities still affordable for businesses in the Asia‑Pacific region?

Yes. According to Mercer’s 2011 Worldwide Cost of Living Survey cited in the article, Australian cities remain among the most affordable destinations for businesses operating in the Asia‑Pacific region, despite a strong Australian dollar.

How did the Bank of Japan change its GDP forecast and what was the reason?

The Bank of Japan lowered its real GDP growth forecast for the current fiscal year to 0.4% from an earlier 0.6% projection, citing the economic devastation caused by the March 11 earthquake and tsunami.