The week in review

Friday 24th August 2001

COMPANIES

Contact Energy delayed by three days, until today, a maintenance shutdown of its thermal Otahuhu B power station to catch lower power demand over the weekend. Analysts have revised their profit forecasts for Contact's September year up to about $119 million.

On Monday the government will consider a report from adviser Cameron & Co on Air New Zealand and expects to decide by September 4 whether it will allow Singapore Airlines to lift its stake in the airline to 49%. Analysts expect Air New Zealand to announce an annual loss of about $200 million.

Global investment bank JP Morgan became the latest player to announce cuts to its New Zealand workforce. In a move described as a "consolidation," it is closing its Wellington office, where 40 staff are employed but will retain a "core investment banking and institutional dealing capability" in Auckland.

Apple Fields is moving into the mining business. It has conditional agreement with Adelaide-based SABC Project Management and Titan Resource Group of the US to buy mined ore in Nevada and refine it into metals of an as-yet-unspecified variety. Under the deal the debt- and asset-free Apple Fields will issue a majority shareholding to Titan.

Lion Nathan said it would report double-digit earnings growth for the September year. Australian earnings would rise about 10%. New Zealand beer earnings would be up 3%.

Shareholders in Australia's Hutchison Communications approved a $A1 billion third-generation (3G) mobile transtasman alliance with Telecom. The two expect to have 3G services running in Australia by late 2002 or early 2003.

The Dairy Board bought two Mexican dairy companies for an undisclosed sum. The purchases of Lamesa and Eugenia will boost New Zealand dairy sales in Mexico by $220 million to $750 million.

BRL Hardy unit Nobilo will spend an initial $40 million over the next few years in a effort to quadruple wine production. The Auckland-based winery will acquire around 1000ha of established and bare land in grape-growing areas.

BUSINESS

The Securities Commission has banned the distribution of advertisers for an offshore car-buying scheme it says is illegally promoted.

Petrol consumption fell 2.4% in the year to March, 2001, due to a decline of nearly 13% in premium grade sales. In recent years use has been growing at around 1.8% a year.

TECHNOLOGY

New corporate rating service Rapid Ratings will provide its software-based rating assessment service for the National Bank's private banking division.

Software of Excellence said it has more than $3 million worth of contracts in the pipeline. The company expects to break even for the first half-year of 2002.

WORKPLACE

Sanford fish processing workers in Timaru and Bluff will get a 13% wage increase within eight months, following two months of strikes. Meanwhile Sky City workers picketed the Auckland casino to press a wage claim

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