BRIEFS
Miner picks up
Mount Gibson Iron says the sharp drop in iron ore prices last year that forced it to strip out costs meant it was now well positioned following the market recovery. The Western Australia-based miner posted on Tuesday a 71 per cent drop in first-half net profit to $37.1 million.
PIMCO OUTLOOK
More rate cuts
Global bond investor Pacific Investment Management Company says Australian debt markets are misguided to bet the central bank is almost done cutting interest rates, as the economy will struggle to cope with the fading resources boom. "The big economic uncertainty arrives when the economy transitions from an investment destination to a production and export engine," said Robert Mead, the head of portfolio management at Pimco.
MACMAHON
Bid rejected
Shares in Macmahon fell 2¢ to 34¢ after it rejected the latest takeover offer from the Indian-owned company Sembawang Australia. Macmahon has already struck a deal with Leighton Holdings over the sale of its troubled construction business.
CALIBRE
Revenue rises
The engineering services company Calibre has lifted its first-half profit by 12.3 per cent to $18.75 million. Revenue rose 43.3 per cent to $368 million, driven by strong demand from its blue-chip clients in Western Australia. Calibre declared an interim dividend of 5.8¢.
MCPHERSON'S
Profit up 7.6%
The homeware and beauty products company McPherson's has announced a first-half profit increase of 7.6 per cent despite challenging trading conditions. The company posted a net profit for the six months to December 31 of $10.91 million and announced a fully-franked interim dividend of 10¢ a share.
CONSTRUCTION
Leighton's loss
Leighton estimates it will lose $650 million in revenue over the four years to 2016 following a decision by Xstrata to bring production at the large Collinsville coal mine in Queensland in-house. The transition would commence from August, it said.
JAPAN
No bond plans
Japan's Finance Minister, Taro Aso, says the government has no intention of buying foreign bonds through a fund with the Bank of Japan, comments that caused the yen to strengthen.
Frequently Asked Questions about this Article…
Mount Gibson Iron reported a 71% drop in first‑half net profit to $37.1 million after a sharp fall in iron ore prices last year forced the company to strip out costs. The company says those cost cuts and the subsequent market recovery have it well positioned going forward — a reminder that commodity price swings can hit miner profits hard but cost discipline can help on the rebound.
PIMCO (Pacific Investment Management Company) warned that Australian debt markets are wrong to assume the central bank is nearly finished cutting interest rates. It says more rate cuts may be needed as the economy struggles when the resources boom fades. For investors, this view suggests watching bond yields, interest‑sensitive sectors and how economic growth shifts as resource investment slows.
Macmahon shares slipped 2¢ to 34¢ after the company rejected a takeover offer from Indian‑owned Sembawang Australia. The company has already agreed to sell its troubled construction business to Leighton Holdings, and the market reaction reflects investor uncertainty around the takeover outcome and the corporate restructuring.
Calibre lifted first‑half profit by 12.3% to $18.75 million and grew revenue 43.3% to $368 million, driven by strong demand from blue‑chip clients in Western Australia. The company declared an interim dividend of 5.8¢, signalling improved trading momentum for investors to consider.
McPherson's reported a first‑half net profit increase of 7.6% to $10.91 million for the six months to December 31 and announced a fully‑franked interim dividend of 10¢ a share, showing resilience despite challenging trading conditions.
Leighton estimates it will lose about $650 million in revenue over the four years to 2016 after Xstrata decided to bring production at the Collinsville coal mine in Queensland in‑house. Leighton said the transition will start from August, so investors in construction stocks should factor in this near‑term revenue impact.
Japan's Finance Minister Taro Aso said the government has no intention of buying foreign bonds through a fund with the Bank of Japan. Those comments led to a strengthening of the yen, underlining how policy statements can move currency markets quickly.
The article shows that iron ore price drops can sharply reduce miner profits (as with Mount Gibson) and force cost cutting, while a recovery can improve company positioning. PIMCO warns the broader economy may struggle as the resources boom fades, which can influence interest rates, bond markets and resource‑exposed stocks — so investors should monitor commodity cycles and company cost management.
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