BRIEFS

LEIGHTON

By InvestSMART · 7 Nov 2012

By InvestSMART ·
7 Nov 2012

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LEIGHTON

$1.4b funding

Leighton has signed a new $1.4 billion funding agreement and raised $US500 million ($479 million) from an issue of senior notes in the US. The facility refinances $700 million.

QANTAS

Case dismissed

Six aircraft engineers complained about the safety of doors on Qantas-owned planes as part of a subversive campaign for better pay, a court has ruled. The engineers reported in October 2010 that cockpit locks on Dash 8 planes operated by the Qantas subsidiary Sunstate Airlines could be opened with an ice-cream stick or a rolled-up boarding pass. However, a judge described the engineers' deeds as "industrial actions to be cloaked as aviation safety issues". He dismissed their application.

CAR PARTS

Work resumes

The troubled car parts producer Autodom has resumed operations in South Australia, averting a shutdown of Holden. Autodom's other plants in Melbourne are expected to be back in business today, ensuring a supply of components to Ford.

MINING

Labour costs up

Newmont Mining, which operates the Boddington goldmine south of Perth, says it is planning for annual pay rises of 5 per cent to 7 per cent across its global portfolio amid upward pressure on labour costs.

PUBLISHING

PMP stagnant

PMP does not expect any real increase in its earnings this year owing to tough trading conditions. If the result is as expected, it could be broadly in line with the $32.7 million it achieved in the year to end-June.

LITIGATION

Council action

IMF Australia will fund another legal action against Standard & Poor's after a landmark court ruling this week against the ratings agency in its battle with 13 NSW councils. The company has agreed to fund Muswellbrook Shire Council's action against S&P and investment bank ABN Amro over the purchase of complex investment products.

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Frequently Asked Questions about this Article…

What recent funding deal did Leighton announce and what does it refinance?

Leighton signed a new $1.4 billion funding agreement and raised US$500 million (about $479 million) from a US issue of senior notes. The new facility refinances $700 million of existing borrowing.

What was the outcome of the court case involving Qantas engineers who raised safety concerns?

A court dismissed the case brought by six aircraft engineers who in October 2010 reported that cockpit locks on Dash 8 planes operated by Qantas subsidiary Sunstate Airlines could be opened with an ice‑cream stick or a rolled boarding pass. The judge described the engineers' actions as 'industrial actions to be cloaked as aviation safety issues' and dismissed their application.

Has Autodom resumed production and what does that mean for carmakers like Holden and Ford?

Yes — the troubled car‑parts producer Autodom has resumed operations in South Australia, averting a shutdown at Holden. Autodom's other plants in Melbourne were expected to restart soon, which would help ensure the supply of components to Ford.

How is Newmont Mining planning to respond to rising labour costs?

Newmont Mining, operator of the Boddington gold mine, is planning for annual pay rises of about 5% to 7% across its global portfolio in response to upward pressure on labour costs.

What is PMP’s earnings outlook for the year and why?

PMP does not expect any real increase in earnings this year due to tough trading conditions. If results are as expected, earnings could be broadly in line with the $32.7 million it achieved in the year to end‑June.

What legal actions is IMF Australia funding related to Standard & Poor’s and ABN Amro?

IMF Australia agreed to fund further legal action against Standard & Poor’s following a landmark court ruling in a dispute involving 13 NSW councils. It has also agreed to fund Muswellbrook Shire Council’s action against S&P and investment bank ABN Amro over the purchase of complex investment products.

What investor risks are highlighted by these company developments?

The article highlights several investor risks to watch: refinancing and funding terms (Leighton), potential operational disruptions and supply‑chain impacts (Autodom and carmakers), labour cost inflation affecting margins (Newmont), tough trading conditions weighing on earnings (PMP), and legal or reputational risks from litigation and regulatory disputes (Qantas, Standard & Poor’s and ABN Amro).

How should everyday investors monitor these companies after these announcements?

Investors should watch company announcements and earnings updates for changes in funding, refinancing details and profit guidance (Leighton, PMP), operational updates from suppliers (Autodom), wage and cost guidance from miners (Newmont), and legal outcomes or court rulings that could affect liabilities or reputations (Qantas, S&P, ABN Amro). Regularly checking official releases and market news will help track material developments.