BUSINESS BRIEFS

URANIUM

By InvestSMART · 19 May 2012

By InvestSMART ·
19 May 2012

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URANIUM

Paladin mine cranks up

Paladin Energy's uranium mine in Malawi is back at full production following an industrial dispute sparked by demands from local workers for a 66 per cent pay rise. Workers at the Kayelekera mine walked out after demanding an immediate pay rise, following the recent 50 per cent devaluation of Malawi's currency, the kwacha.

HEWLETT-PACKARD

Threat to 30,000 jobs

The computer manufacturer Hewlett-Packard is reportedly poised to cut up to 30,000 jobs, or 9 per cent of its workforce, due to falling demand for PCs as more people connect to the internet on smartphones and tablets. Analysts estimate such a payroll reduction would save more than $US1 billion a year. The cuts could be announced on Wednesday, alongside its quarterly earnings.

BILLABONG

Backing for Kunkel

Billabong's founder, Gordon Merchant, has moved to dispel rumours that the chairman of the surfwear group, Ted Kunkel, pictured, could soon be asked to leave the board. Speculation that Mr Kunkel may have lost the support of Mr Merchant, who owns nearly 16 per cent of the retailer, mounted on Thursday when at a function Mr Merchant did not publicly back Mr Kunkel's tenure. But yesterday he put out a statement saying: "It was not my intention to create any uncertainty about the position of the chairman. Ted continues to have my support."

DIVIDENDS

ResMed payout

The sleep disorder equipment supplier ResMed will pay dividends in the next financial year. ResMed said it would pay a quarterly dividend of US17? per share from the first quarter of 2012-13. The chief executive, Peter Farrell, said the company had been using its cash for research and development, and to repurchase some shares.

RETAIL

Retravision woes

The fate of another retailer is under a cloud, with fears Retravision Southern may slide into administration. Retravision Southern, the buying and marketing company for 99 privately-owned Retravision stores in Victoria and Tasmania and southern NSW, reassured employees that they would be paid if the company fell into administration.

ADVERTISING

Ten in Eye Corp talks

Ten Network is negotiating to sell its outdoor advertising business, Eye Corp, saying it has an exclusivity agreement with a bidder. It is believed JCDecaux and APN had expressed interest. Eye Corp has been valued between $100 million and $125 million by some analysts.

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Frequently Asked Questions about this Article…

What happened at Paladin Energy’s Kayelekera uranium mine in Malawi?

Paladin Energy’s Kayelekera uranium mine in Malawi returned to full production after an industrial dispute. Local workers had walked off the job demanding a 66% pay rise following a 50% devaluation of Malawi’s currency, the kwacha, but production has since resumed.

How did the Malawi kwacha devaluation affect mine workers and operations?

The article reports a 50% devaluation of the Malawi kwacha, which led local workers at the Kayelekera uranium mine to demand an immediate 66% pay increase. That pay dispute triggered a walkout and temporary disruption, though the mine has since been brought back to full production.

Is Hewlett-Packard planning major job cuts and why does it matter to investors?

According to the article, Hewlett-Packard was reportedly poised to cut up to 30,000 jobs—about 9% of its workforce—due to falling PC demand as more people use smartphones and tablets. Analysts estimated such payroll reductions could save more than US$1 billion a year, a potential boost to margins that investors would watch closely when earnings are announced.

What did Billabong’s founder say about chairman Ted Kunkel’s position?

Billabong founder Gordon Merchant moved to dispel rumours that chairman Ted Kunkel might be forced off the board. Although Merchant did not publicly back Kunkel at a function (which sparked speculation), he later issued a statement saying it was not his intention to create uncertainty and that Ted Kunkel continues to have his support.

Will ResMed pay dividends and what did the company say about its cash use?

ResMed said it will pay dividends in the next financial year, reporting it would pay a quarterly dividend of US17? per share from the first quarter of 2012–13. CEO Peter Farrell said the company had been using cash for research and development and to repurchase some shares.

What is the situation with Retravision Southern and its retail stores?

Retravision Southern, the buying and marketing company for 99 privately owned Retravision stores in Victoria, Tasmania and southern New South Wales, was reported to be at risk of sliding into administration. The company reassured employees they would be paid if it did fall into administration.

Is Ten Network selling its outdoor advertising arm Eye Corp and who’s interested?

Ten Network was negotiating to sell its outdoor advertising business, Eye Corp, and had an exclusivity agreement with a bidder. The article says JCDecaux and APN had been linked with interest, and some analysts had valued Eye Corp between $100 million and $125 million.

When might HP’s potential job cuts be announced and what financial impact was reported?

The article noted that the HP job cuts could be announced alongside the company’s quarterly earnings, and analysts estimated the payroll reduction would save more than US$1 billion a year—an amount investors would consider when assessing the company's cost-saving outlook.