The week in review

With business editor Nick Stride

Friday 8th March 2002

Steel-producing countries around the world attacked the US decision to impose a tariff on imports of 8-30%. BHP New Zealand Steel said some $60 million of exports would be affected at the highest level when the tariff is imposed on March 20. This represents about 20% of output from its Glenbrook plant. It is likely the US will be taken to the World Trade Organisation to overturn the tariffs, which are aimed at providing temporary protection while the loss-making US steel industry is restructured.

Carter Holt Harvey successfully syndicated a new $A500 million multi-currency loan facility to replace an existing credit facility that expires in April 2002. It was lead-arranged by Citibank, with Bank of New Zealand as co-arranger.

AgResearch sold its Celentis Analytical laboratories in Ruakura, Hamilton, and Invermay, near Dunedin, to Dr Brian Linehan, a Hamilton medical specialist-turned-businessman who is chairman and managing director of Medlab Hamilton and Medlab Gisborne. Dr Linehan also owns three other agribusinesses, Envirohealth, Aglab and Agricultural Consulting Services. The laboratories will be renamed e-lab.limited.

Lion Nathan confirmed it expected its September full-year net earnings would be $A160 million ($196 million) and that its half-year result would be "consistent with this outlook," delivering double-digit growth. Lion made $109 million in the last half-year and $141 million in the full year.

Private fishing and foods company Talleys Fisheries agreed to buy Green & McCahill's 10.5% stake in meat processor and marketer Affco for 38c a share, subject to Affco shareholder approval. The deal, worth $10.8 million, would take Talleys' holding to 27.5%.

BIL International's 46%-owned UK hotel group Thistle Hotels reported a 28% calendar 2001 pre-tax profit fall, to £49.1 million ($164 million). It also said revenue for the first eight weeks of 2002 was down 10% on the previous year, and announced it was in talks about a possible material transaction.

Fast-food franchise operator Restaurant Brands reported February-quarter total sales rose 9.6% to $63.2 million. KFC sales were up 5%, Pizza Hut 10.7% and Starbucks 65.1%.

Todd Energy bought the McKee and Mangahewa oil and gas fields from Shell New Zealand in a deal which also saw it lift its stake in the Pohokura gas field, New Zealand's second-largest, to 18.7%. Todd said its reserve base rose from 50 million barrels of oil equivalent to 77 million, with undeveloped reserves of 46 million. No price was disclosed.

Comments from our readers

No comments yet