Monday 9th March 2009 |
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Themes of the day: The U.S. unemployment rate hit a 25-year high of 8.1% in February, according to the Labor Department's non-farm payrolls report. Some 651,000 jobs were lost in February as companies eliminated workers in response to the prolonged recession. The price of oil gained on speculation OPEC will consider another round of production cuts when its meets this week.
Cavalier (CAV): The Commerce Commission on Friday said it had cleared businessman David Ferrier, or his company New Zealand Woolscourers Limited, to acquire wool scouring and wool dumping assets of Godfrey Hirst NZ and shares in Cavalier Wool Holdings. The acquisition will result in the wool scouring businesses of Cavalier Wool and Godfrey Hirst coming under common ownership.
Cavalier Wool is 92.5% owned by Cavalier Bremworth 7.5% by interests associated with Ferrier, according to a commission statement late on Friday. The shares rose 0.8% to $1.27 and have dropped 27% this year.
Contact Energy (CEN): The biggest utility on the NZX 50 on Friday said it would cap its bond sale at $550 million after strong demand for the debt. Chief executive David Baldwin said demand for the bonds "shows good support for Contact's business and its strategic initiatives." Contact rose 0.7% to $5.55 on Friday and has declined 24% this year.
Fletcher Building (FBU): The nation's biggest construction company fell 2.3% to $5.15 on Friday when it said it would focus on cost control and preserving cash in the face of weak demand in Australia and the US in 2009. A report from QV Valuations today showed New Zealand property values dropped 8.9% last month.
Michael Hill International (MHI): The jewellery chain reported earnings before tax dropped 37% to $17.9 million as waning consumer demand eroded its margins. Net profit jumped 237% to $65.6 million, reflecting a deferred tax credit of about $53 million as a result of the company's IP being transferred to its Australian subsidiary. The shares fell 1 cent to 47 cents on Friday and are down 14% this year.
Rakon (RAK): Shares of the company jumped 14% to 97 cents on Friday after the manufacturer said it remains comfortable with its November forecast for full-year profit of about $4 million.
Skellerup Industries (SKL): The rubber goods and dairy equipment maker fell 1.8% to 56 cents on Friday after posting a 6.6% gain in first-half profit on increased demand from dairy farmers while warning of deterioration in the second half as global demand remains weak.
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