Stocks to watch: Air NZ profit slumps, Sky TV forecast downgraded, Skellerup

Thursday 27th August 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: Stocks on Wall Street were mixed after stronger homes sales data helped boost building and retail stocks, while manufacturers were hurt by Chinese officials voicing concerns about overcapacity in sectors such as steel and cement. The kiwi dollar held above 68 U.S. cents as the Chinese comments sapped risk appetites, and it pushed to a four-and-a-half month high against the Australian dollar.

Air New Zealand Ltd. (NZX: AIR ): The airline’s net profit slumped 90% to $21 million on higher costs for fuel maintenance and labour. Meanwhile, its Zeal 320 subsidiary said it reached agreement with flight attendants on a new collective contract. The accord follows long-running negotiations on the contract to cover most flight attendants who operate on the A320 aircraft on the Tasman Pacific routes. The shares were unchanged at $1.25.

Oyster Bay Marlborough Vineyards Ltd. (NZX: OBV ): The vineyard operator that supplies grapes to Oyster Bay brand winemaker Delegat’s posted a 46% decline in annual profit after its total harvest fell 13%. The shares last traded on August 24 at $2.30.

Skellerup Holdings Ltd. (NZX: SKL ): The manufacturer of rubber goods and milking equipment reported a net profit of $9.2 million as weaker demand out of Europe and the U.S. sapped earnings in the second half of the year. The company announced a fully underwritten rights issue to raise $21.5 million, which will go ahead once it has the regulatory approvals. The shares were unchanged at 56 cents.

Sky Network Television (NZX: SKT ): Research firm AspectHuntley lowered its 2010 profit forecast for the pay-TV company to $103.6 million from $110 million. The cut reflects the pay-TV company’s operating expenses outpacing revenue growth with the launch of MYSKY HDi, weaker advertising and lower subscriber growth. The shares fell 1.6% to $4.46 yesterday.

TeamTalk Ltd. (NZX: TTK ): The company reported a 3.4% gain in full-year profit to $3.8 million, beating its own guidance. The shares climbed 5.6% to $2.06 and are up about 3% this year.

Businesswire.co.nz

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