IN BRIEF

RECALL Hearing implant maker Cochlear has shrugged off the shock recall of its Nucleus CI500 device last year, according to a doctor from the NYU Cochlear Implant Centre in the US, which treats 1800 patients a year. Attending a UBS healthcare conference in Sydney, Dr Susan Waltzman said the clinical and research centre had not seen any decrease in implant numbers during the financial crisis. The recall in September helped trigger Cochlear's first loss as a listed company, of $20 million in the ...

By InvestSMART · 8 Jun 2012

By InvestSMART ·
8 Jun 2012

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CREDITORS The Federal Court has granted the administrators of the collapsed St Hilliers Construction extra time to convene a second meeting of creditors. Following yesterday's court order, the meeting must be held no later than August 13.

ENERGY The Major Energy Users Inc is to challenge a ruling by the Australian Electricity Market Commission which yesterday said it would not move to limit the ability of large generators to manipulate power prices. "We're quite disappointed," a spokesman for the group said of the decision.

SUPER Employment Minister Bill Shorten yesterday has told investors that increasing superannuation contributions to from 9 to 12 per cent by 2019 would push super savings up by trillions over the next two decades. Figures released by APRA yesterday showed value of superannuation funds under management is up 3.6 per cent in the year to end-March to hit $1.38 trillion.

SHARES After raising $10 million via a placement of shares at $1 each, iProperty Group has launched a share purchase plan, giving retail shareholders the opportunity to top up their holdings at the same price as it seeks to pursue further consolidation and growth opportunities in Asia.

MERGER Glencore's merger with Viterra will not be opposed by the Australian Competition and Consumer Commission. Viterra said it expected the transaction to close by the end of July 2012 subject to the satisfaction of conditions including approval from the Foreign Investment Review Board.

REFINING Heavy losses have prompted Shell to bring forward by a year the planned closure of the Clyde refinery in Sydney, with the loss of more than 200 jobs. The move comes as Caltex is reviewing the future of the Kurnell refinery in Sydney, with a decision to close possibly due as soon as next month. "Since the decision [to review Clyde] was taken, the refinery has continued to struggle against sustained poor industry margins and intense competition from mega-refineries in Asia," Shell Australia downstream vice-president Andrew Smith said. Clyde can process 79,000 barrels a day and is far smaller than Kurnell, which can handle 124,500 barrels a day. Shell has 275 employees at Clyde, which will be converted to a fuel terminal, employing between 30 and 50.

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Frequently Asked Questions about this Article…

What happened with Cochlear's Nucleus CI500 recall and how did it affect the company?

Cochlear faced a shock recall of its Nucleus CI500 device in September. According to the article, the recall helped trigger Cochlear's first listed-company loss of $20 million in the six months to December. A doctor from the NYU Cochlear Implant Centre said clinically they had not seen a fall in implant numbers, suggesting some resilience despite the recall.

How does the Cochlear recall matter to everyday investors concerned about clinical impact and company performance?

The article highlights two investor-relevant points: the recall contributed to a reported $20 million half-year loss for Cochlear, and a US clinician noted their centre did not see a drop in implant procedures. Investors should be aware that the recall had material financial impact while clinical demand at some centres appeared steady, based on the article.

What is the latest development in the St Hilliers Construction insolvency for creditors and investors?

The Federal Court granted administrators extra time to call a second meeting of St Hilliers Construction creditors. Under the court order, that meeting must be held no later than August 13. This is a procedural update investors and creditors can monitor for progress in the administration process.

What did the Australian Electricity Market Commission decide about limiting generator market power and why does it matter?

The Australian Electricity Market Commission said it would not move to limit the ability of large generators to manipulate power prices. The Major Energy Users Inc group said it will challenge that ruling and expressed disappointment. For investors, this decision highlights ongoing regulatory debate about market power and potential impacts on electricity pricing and large generator revenues.

What did APRA report about superannuation funds and what did Bill Shorten say about contribution increases?

APRA reported the value of superannuation funds under management rose 3.6% in the year to end‑March, reaching $1.38 trillion. Employment Minister Bill Shorten said increasing compulsory superannuation contributions from 9% to 12% by 2019 would boost super savings by trillions over the next two decades, according to the article.

What should retail shareholders know about iProperty Group's recent capital raise and share purchase plan?

iProperty Group raised $10 million through a placement of shares at $1 each and has launched a share purchase plan (SPP) giving retail shareholders the chance to top up holdings at the same $1 price. The company said it is pursuing further consolidation and growth opportunities in Asia, which is the stated purpose for the capital raising.

Has the Glencore and Viterra merger been cleared by regulators and what are the next steps?

The Australian Competition and Consumer Commission will not oppose Glencore's merger with Viterra. Viterra said it expects the transaction to close by the end of July 2012, subject to satisfying conditions including approval from the Foreign Investment Review Board, per the article.

Why is Shell closing the Clyde refinery early and what are the implications for refinery jobs and capacity?

Shell brought forward by a year the planned closure of its Clyde refinery in Sydney due to heavy losses, citing poor industry margins and competition from large Asian mega-refineries. The closure will result in the loss of more than 200 jobs; Clyde can process 79,000 barrels a day and currently employs 275 people. Shell plans to convert Clyde into a fuel terminal employing between 30 and 50 people. The article also notes Caltex is reviewing the future of the larger Kurnell refinery, with a possible closure decision as soon as next month.