PRESS DIGEST: Australian Business News: Aug 2407:06, Thursday,...

PRESS DIGEST: Australian Business News: Aug 24
07:06, Thursday, 24 August 2006

(Compiled for Reuters by Media Monitors)
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Brambles Industries will undertake a US$2.2 billion
(A$2.9 billion) share buyback after it merges its Australian and
British listed companies in December. This completes the group's
landmark US$3.6 billion capital management program that included
the sale of its Australian waste-management division in June.
Chief executive, David Turner, yesterday reported a 'momentous'
16 per cent increase in net profit for the CHEP pallet maker last
year, posting just under US$1.5 billion. Page 15.

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The over-production of grapes in Australia will continue
until 2009, warns McGuigan Simeon Wines , after the
winemaker crashed to a loss of A$11.5 million on its second
write-down in three months. McGuigan yesterday cut the value of
its wine inventory by a further A$15 million, following a A$26
million write-down in May. Chief executive, Dane Hudson, said he
hoped the result was the company's low point, but he could not
provide any guarantees because of a sharp decline in the bulk
wine market over the past six weeks. Page 15.

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Blood plasma provider, CSL , expects its successful
cervical cancer vaccine, Gardasil, to generate up to A$50 million
in earnings this financial year. CSL yesterday posted a
full-year net profit of A$117.4 million, down heavily on the
previous year. However, the accounts included a liability of
A$328 million owed to Sanofi Aventis for the purchase of its
blood plasma division in 2004. CSL forecast revenue growth of
six per cent in the next 12 months, on a 10 per cent increase in
blood prices during 2006. Page 16.

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Virgin Blue Airlines is considering offering flights
to Asia as it looks to improve the profitability of routes to the
United States by launching a full range of long-haul services.
Chief executive, Brett Godfrey, said yesterday he might use
Australian Workplace Agreements for staff on the services,
following a similar move by Qantas Airways offshoot, Jetstar
International. Virgin Blue reported net profit of A$84 million
for the nine months to June, 12 per cent higher than the
comparable period in 2004-05. Page 20.

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THE AUSTRALIAN (www.theaustralian.news.com.au)

James Packer's Publishing & Broadcasting Ltd (PBL)
plans to buy his family's stake in a group of British casinos as
a prelude to a push into the European gaming market. PBL
yesterday posted A$610 million for 2005-06, up 25.6 per cent on
the previous year, with earnings from gaming nearly on par with
those from the group's media interests. The Packer family's
Consolidated Press Holdings jointly owns three small British
casinos, including London's Aspinall Club, with local casino
heir, Damian Aspinall. Page 19.

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Woodside Petroleum's A$915 million Chinguetti
project off Mauritania has suffered another setback after junior
partner, Hardman Resources, revised down recoverable oil reserves
by 50 per cent. Chinguetti is producing an average 35,000
barrels a day, compared with a plant capacity of 75,000 barrels,
and will be subject to a comprehensive review. The news follows
a military coup in the West African country last year, which led
to forced revision of the profit-sharing arrangement between
Woodside and the Mauritanian Government. Page 19.

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Clothing manufacturer, Pacific Brands , yesterday
reported an annual net profit of A$101.2 million, up only
slightly on the A$100.9 million a year ago, despite a sustained
cost-cutting program. Chief executive, Paul Moore, attributed
the flat earnings growth to rising fuel prices and interest
rates, which had dampened the 'retail landscape' overall. 'Given
the tougher business environment...we have continued to focus on
managing our costs,' Mr Moore said. Pacific Brands' labels
include Berlei, Bonds and Holeproof. Page 21.

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Packaging group, Amcor , has announced further plant
closures and warned of difficulty in recovering higher input
costs, despite posting a 43 per cent increase in annual profit to
A$351.3 million. Chief executive, Ken MacKenzie, said the
company would spend A$300 million restructuring its Australian
fibre packaging business over the next four years, including the
closure of a recycled paper mill in Western Australia and a
cardboard box plant in Melbourne. This would offset raw material
and energy costs 'outside our control,' he said. Page 21.

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THE SYDNEY MORNING HERALD (www.smh.com.au)

Hutchison Telecommunications has reported a
half-year loss of A$525 million, blaming stronger competition in
the mobile-phone market and one-off costs associated with
upgrading its mobile network. The net debt held by Hutchison
increased by A$347 million to A$3.34 billion as of June 30,
prompting concern from analysts about its ability to service the
borrowings. 'We really are seeing that debt explode; it's just
going to cripple them,' Ovum analyst, Nathan Burley, warned
yesterday. Page 24.

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Macquarie Airports (MaP) expects retail and parking
spaces at its two biggest airports, Copenhagen and Brussels, to
boost annual earnings and offset the effect of higher fuel
surcharges and tighter security. MaP, which also operates Sydney
Airport, yesterday reported a 29.5 per cent increase in
first-half profit to A$203.7 million. Chief executive, Kerrie
Mather, forecast earnings growth of nine to 10 per cent for the
full year, and revealed plans to increase MaP's holdings in
Sydney and Brussels by 15 per cent and 1.9 per cent respectively.
Page 24.

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Mortgage broker, Mortgage Choice , warns that another
interest rate rise will further burden New South Wales' economy
and may require rates to be cut next year. Chief executive, Paul
Lahiff, reported a 43 per cent jump in annual profit to A$17.9
million last year, but predicted a 'very competitive and
challenging housing finance market' ahead. If the Reserve Bank
of Australia raises rates for a third time this year, 'they run
the risk of having to cut rates in 2007 because they are really
putting NSW and Victoria in a bit of trouble,' Mr Lahiff said.
Page 25.

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Telstra's BigPond Internet unit is generating annual
revenues of A$30 million from its movie, music and gaming
download services and managing director, Justin Milne, expects
the figure to increase to more than A$250 million within five
years. Australia's biggest Internet provider will sign a deal
with a second Hollywood studio next month, doubling its catalogue
of film titles for rental downloads. Mr Milne revealed BigPond's
streaming numbers were 'a bit under two million' a month. Those
volumes would double by mid-2007, he predicted. Page 27.

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THE AGE (www.theage.com.au)

Incoming AXA Asia Pacific chief executive, Andrew
Penn, is free to take up his new appointment after the
Administrative Appeals Tribunal overturned a ban imposed by the
financial services regulator. The Australian Prudential
Regulation Authority (APRA) had attempted to disqualify seven
directors of AXA's Australia Staff Superannuation Plan, including
Mr Penn, for allegedly altering payment schedules and failing to
disclose the changes. AXA chairman, Rick Allert, last night
called for a review of the APRA. Page B1.

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More visitors to its websites and increased advertising
spending by real estate agents helped property website,
realestate.com.au, nearly double its revenue last year. Net
profit for 2005-06 rose two per cent to A$8.2 million, but that
result was skewed by A$1.6 million spent on a takeover defence
and a A$6.4 million alteration to a tax bill, managing director,
Simon Baker, explained yesterday. Mr Baker said a 134 per cent
increase in gross profit was a better measure. Page B2.

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West Australian explorer, Jubilee Mines , yesterday
posted a record A$103.36 million for 2005-06 on the back of
soaring nickel prices. The result demonstrated the 'substantial
margins that can be generated from a high-grade, low-cost nickel
sulphide operation,' said chairman, Kerry Harmanis. It would
also allow the company to expand its operations and double
production within the next five years, Mr Harmanis said. Jubilee
is the sole operator of the Cosmos South nickel project in the
Kathleen Valley, 40 kilometres north of Leinster. Page B2.

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Economic momentum will build over the next three to nine
months, according to a broad measure of economic activity. The
Westpac-Melbourne Institute Leading Index of Economic Activity
rose to an annual rate of 5.3 per cent in June, up from 4.5 per
cent in May, presenting 'a healthy outlook for economic growth.'
Westpac senior economist, Huw McKay, said the result reinforced
his prediction that the Reserve Bank of Australia would lift
interest rates by another 25 basis points in November, taking the
cash rate to 6.25 per cent. Page B2

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