Friday 13th August 2010 |
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Farming Systems has been given a tax concession from the Uruguay government worth up to $35 million, PGG Wrightson reported profits in line with forecasts and Steel & Tube share fell yesterday after posting a 78% slump in profits.
NZ Farming Systems (NZS): The South American dairy operator facing a takeover bid by Singapore's Olam International has gained a tax concession from the Uruguay government with an estimated current value of $28 to $35 million, according to a company statement. The benefits will be available to offset the company's tax liability once it becomes profitable, which is anticipated to be in the 2011-12 financial year. Farming Systems shares last traded at 56 cents, one cent above Olam's offer.
PGG Wrightson (PGW): New Zealand largest rural services company has reported EBITDA of $70.5 million and net profit after tax of $23.3 million for the year ended 30 June 2010, in line with forecast of $73.2 million and $24.1 million respectively. Excluding the Government's recent tax changes to building depreciation of $2 million, underlying net profit after tax was $25.3 million. Group revenues were at $1.1 billion (2009: $1.3 billion). Shares were unchanged at 56 cents.
Steel & Tube Holdings (STU): The supplier of steel products to the construction industry, fell 3.2% to $2.15 yesterday after posting a 78% slump in full-year profit as a lacklustre construction sector weighed on demand. The Wellington-based company made a net profit of $5.7 million, down from $26.1 million a year earlier.
A2 Corp. (ATM): The producer of A2-variant dairy products in New Zealand and Australia has appointed Geoffrey Babidge as managing director, effective next month. Babidge had previously served as chairman of A2 Dairy Products Australia, a joint venture formed by A2 and ASX-listed Freedom Nutritional Products. The stock last traded at 9 cents on August 6.
Kiwi Income Property Trust (KIP): The trust told investors at its annual meeting that it is well positioned to capitalise on New Zealand’s recovery - when it happens. It sees early signs of this turnaround already, with property values stemming their losses to 0.5% in the last six months versus 14% over the last two years. The shares were unchanged at 94 cents.
Telstra (TLS): Australia’s biggest phone company dropped 9.7% to $3.73 on the NZX yesterday after posting a decline in earnings and forecasting further weakness.
Turners & Growers (TUR): The fruit distributor yesterday reported a 10% increase in underlying earnings to $11.8 million for the first-half of its financial year, short of analysts’ expectations. The stock fell 3.5% to $1.40 yesterday.
Themes of the day: Stocks in the US dropped for a third straight day as a worse-than-expected report on US jobless claims, which rose to their highest level since mid-February, fuelled concern about the troubled labour market in the world's largest economy. New Zealand's manufacturing sector faces a grim outlook, after data showed new orders have taken a steep dive in July, dropping almost 10 index points from June to 47.6. The BNZ-Business NZ Performance of Manufacturing Index provides an early indicator of activity levels, with a reading above 50 indicating expansion, below 50 a contraction.
Businesswire.co.nz
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