The week in review

Friday 5th October 2001

COMPANIES

Waikato Regional Airport, the operator of Hamilton International Airport, reported a June-year operating profit of $1.14 million - not a $420,000 loss, as reported last week. NBR regrets the error.

Christchurch International Airport reported June-year net earnings of $13.5 million, up 2.3%, citing an increased inflow of tourists taking advantage of the low New Zealand dollar. Chairman Syd Bradley noted the record profit was despite the loss of Korean Airlines flights and revenue and bad debt write-off from the demise of Qantas New Zealand.

Fletcher Building sold the rural fencing business of its Cyclone subsidiary to Tru-Test for an undisclosed sum.

Strategic Finance, a subsidiary of Strategic Investment Group, reported a $3.6 million June-year profit. The privately owned group offers financial services primarily to the commercial property sector.

Aged care provider Eldercare is raising up to $10.5 million to finance acquisitions and repay debt. It will raise $3.5 million through a one-for-7.5 rights issue, $2 million through a placement to Alliance Capital, and $5 million through a convertible note issue to Cullen Investments.

Wellington-based software developer Genie Systems went into receivership after sales fell below projections. Around 35 staff are affected.

Tower Ltd subsidiary Tower Financial Services has placed a $100 million issue of one-year floating rate notes to replace a similar, maturing issue.

Infratil's international listed utilities investment company, Utilico, sold its last asset, a 50% stake in Brisbane's CSX World Terminals. Utilico is being would up.

Tranz Rail sold its Auckland rail corridor to regional councils for $81 million in a government-brokered deal. The councils had previously agreed to pay $112 million but Tranz Rail will receive $2.85 million a year for train control and maintenance.

About 25 staff at WebMedia were looking for new jobs after the internet developer ceased trading.

Port Nelson posted a $4.6 million annual profit, up from $3.6 million a year ago, on revenue of $21.8 million.

Frucor Beverages' 31% shareholder denied a newspaper report it had appointed an adviser to find a new owner for its stake. Its shares were not for sale, it said.

Aluminium maker Comalco New Zealand said it would book a lower December-year profit because of production cuts undertaken in response to the winter's power price surge. Production is still affected and chief executive Kerry McDonald said the cuts were equivalent to around 19,880 tonnes on an annualised basis.

Telstra will pump into the Telstra Saturn New Zealand broadband venture $150 million of capital due from partner Austar. The deal includes put and call option agreements on the 50% stake held by Austar, which is struggling in its Australian home market.

ECONOMY

The Reserve Bank maintained official interest rates at 5.25% while the Australian central bank cut its benchmark rate a quarter percentage point to 4.5%, the lowest since it began publishing rate changes in 1990.

LEGAL

Two charges related to the foreign ownership status of failed Qantas NZ franchisee Tasman Pacific and its parent Zazu were dropped. Five charges were laid against seven former directors of the defunct airline by the registrar of companies, and the case has been adjourned until December 4.

The Law Commission released a discussion paper on ways to improve the Arbitration Act, which allows disputes to be settled out of court through a judicial process.

TECHNOLOGY

Telecom said it would support the government, Federated Farmers and electric fence manufacturers in stopping electric fences interfering with telecommunications service.

TRADE

The value of merchandise exports in the year ending June, 2001, is $30.79 billion, Trade New Zealand said. Top performers were the dairy industry, up 47%, meat up 23.8% and metals up 14.2%.

TRANSPORT

Tranz Rail will receive $81 million for Auckland's rail corridor in a deal concluded with the government as part of a public transport plan.

WORKPLACE

The government introduced amending legislation into Parliament to register all unions recently declared invalid in a Court of Appeal ruling. The Employment Relations (Validation of Union Registration and Other Matters) Amendment Bill will override that ruling.

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