STEEL
Bluescope buoyed
Bluescope Steel shares surged on Thursday in the wake of bullish broker comment following an investor briefing earlier in the week outlining the growth prospects for its prefabricated steel building unit. Bluescope is targeting annual revenue from the division of $3 billion by fiscal 2015, double the revenue the division posted in 2012. Bluescope shares closed 5? up at 50?.
CHINA
Industry rebounds
China's manufacturing activity grew in November for the first time in 13 months in a further sign of strength in the world's second-largest economy after a marked slowdown. The preliminary purchasing managers' index (PMI) hit 50.4 this month, up from a final 49.5 in October, after 12 consecutive months in negative territory. A reading above 50 indicates growth in the key sector, while one below signals contraction.
PUBLISHING
Phone books move
Printing and publishing business PMP will close its Sydney plant that produces the White Pages and Yellow Pages phone directories. PMP says its Chullora printing plant in Sydney's west will close on June 30 next year because of falling demand for printed phone books. It says most Chullora employees are likely to be made redundant. The Yellow Pages and White Pages work will be done from PMP's printing plant in Moorebank, in Sydney's south-west.
BANKING
Westpac buyback
Westpac has bought back and cancelled $3.37 billion in government-guaranteed debt out of a total of $4.92 billion of the notes originally on issue. The buyback reduces Westpac's refinancing requirements in the 2014 financial year by $2.94 billion and by $434 million in the 2015 financial year. The guaranteed debt was introduced at the height of the financial crisis to allow Australian banks to continue to raise funds on global markets.
MINING
Ausdrill feels pain
Ausdrill has finally confirmed that the slowdown in resource sector spending has caught up with it. It has flagged revenue growth of 20 per cent this financial year with the inclusion of its recent acquisition of Best Tractor Parts, up slightly from the earlier forecast of 15 per cent, but with a slowdown in iron ore sector demand hurting revenues. It also flagged $15 million of one-off costs to be written off, while pointing out it is looking to a stronger second half than the first to help lift earnings.
RETAIL
Myer backs rate cut
An interest rate cut in December will help the non-mining sector and support retailers in the lead-up to Christmas, Myer chief executive Bernie Brookes says. Mr Brookes says Myer is expecting a flat to slightly positive Christmas, and an interest rate cut will give the department store "a bit of a kick" heading into the traditionally busy trading period.
Frequently Asked Questions about this Article…
Why did Bluescope Steel shares surge after its investor briefing?
Bluescope Steel shares rose after brokers reacted positively to an investor briefing that highlighted growth prospects for its prefabricated steel building unit. The company is targeting strong expansion for that division, which lifted investor sentiment and triggered the share price move.
What revenue target has Bluescope set for its prefabricated building division?
Bluescope is targeting annual revenue of $3 billion from its prefabricated steel building division by fiscal 2015, which the company says would be about double the division's revenue in 2012.
What did the November China manufacturing PMI report indicate and why does it matter to investors?
The preliminary purchasing managers' index (PMI) for China was 50.4 in November, up from a final 49.5 in October — the first reading above 50 in 13 months. A PMI above 50 signals growth in manufacturing, and this rebound is a sign of improving activity in the world’s second-largest economy, which can influence global markets and commodity demand.
Why is PMP closing its Chullora printing plant and what will change operationally?
PMP is closing its Chullora plant on June 30 next year due to falling demand for printed phone directories (the White Pages and Yellow Pages). Most Chullora staff are likely to be made redundant, and the phone book printing work will be relocated to PMP’s Moorebank printing plant.
What did Westpac’s buyback of government‑guaranteed debt involve and how does it affect the bank's refinancing needs?
Westpac bought back and cancelled $3.37 billion of government‑guaranteed debt out of $4.92 billion originally issued. The buyback reduces Westpac’s refinancing requirements by $2.94 billion in the 2014 financial year and by $434 million in the 2015 financial year.
How has the mining sector slowdown affected Ausdrill’s financial outlook?
Ausdrill confirmed the resource sector slowdown has hit the business. It flagged revenue growth of 20% for the financial year after acquiring Best Tractor Parts (up from an earlier 15% forecast), but said weaker iron ore demand is hurting revenues and it will write off $15 million of one‑off costs while seeking a stronger second half to lift earnings.
What does Myer expect for Christmas trading and how might an interest rate cut help retailers?
Myer expects a flat to slightly positive Christmas trading period. Myer CEO Bernie Brookes said an interest rate cut in December would help the non‑mining sector and give retailers, including Myer, 'a bit of a kick' heading into the traditionally busy trading season.
Which key updates from these companies should everyday investors monitor for market impact?
Investors should watch Bluescope’s progress toward its $3 billion prefabricated buildings target, Chinese PMI trends that signal demand shifts, PMP’s plant closure and its cost implications, Westpac’s debt buybacks and refinancing profile, Ausdrill’s revenue guidance and one‑off write‑offs, and retail outlooks tied to interest rate moves and seasonal trading.
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