ASX Buy Shares News: AGL Energy (AGK)

AGL Energy (ASX:AGK) is Australia’s leading energy provider and the only energy producer with a full offering of renewable generation, providing natural gas and electricity to more than six million Australians.

AGK is Australia’s largest operator and developer of renewable energy generation, and is among the biggest companies (by market cap) in the stock market.

It has major investments in the supply of gas and electricity, as well as a substantial base of customers across Australia.

In line with one of the world’s hot topics, AGK is committed to leading Australia in minimising the effects of climate change by investing in sustainable energy businesses such as wind farms and environmentally friendly projects, including the underground Bogong hydroelectric power station in Victoria.

AGK’s organic growth strategy continues to deliver success with 95,959 new NSW electricity customers contracted in the second half of FY11.

Changing environment

The company has been busy since swapping assets with Alinta in 2006, a move that saw it acquire the retail business of both companies.

AGK now has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation (coal and gas) as well as renewable sources, including hydro, wind, landfill gas and biogas.

AGK's power generation assets are predominantly located within the regions where its retail customers are generally located, and their renewable energy generation assets comprise around 40% of their portfolio.

AGK is well positioned for a low carbon environment with a pipeline of low-emission gas and renewable power development projects.

The company has grown from strength to strength with some key acquisitions made along the way.

It completed the acquisition of Mosaic Oil NL in October 2010 after Mosaic urged its shareholders to accept AGK’s $123 million bid.

The move has helped AGK gain access to MOS’ gas storage facilities in Queensland.

Earnings full of energy

AGK this week reported a 57% rise in annual net profit to $558.7 million boosted by a gain in the value of derivatives.

Underlying earnings for the period edged 0.5% higher to $431.1 million (from $428.9 million).

The marginal improvement was due to severe weather events and a much lower contribution from Loy Yang A (LYA).

The results were in line with AGK’s guidance provided in February. AGK had warned that expected earnings would be around $30 million to $35 million lower than initially thought.

AGK declared a final fully franked dividend of 31 cents bringing the full year dividend to 60 cents.

It has also been one of the hot stocks in recent weeks, having surged more than 20% from this month’s low of $12.50.

Looking ahead

Its core business remains strong with a solid FY operational cashflow. For the year, operating cashflow before tax rose more than 7% to $676 million.

Its retail energy division continues to grow with earnings rising 17% to $373 million on year.

AGK expects strong growth from its merchant energy business on the assumption that there will not be a recurrence of the cost incurred in connection with the severe weather events from earlier this year.

The company is looking to further expand its position by exploring a suite of low emission and renewable energy generation development opportunities.

AGK has long been focused on reaching the government’s 2020 renewable energy goal.

We find the company’s defensive qualities particularly attractive in the current economic climate.

It is likely to make some bolt on acquisitions locally to boost its strong hold on the Australian market.

With a strong balance sheet and defensive earnings, AGK is well equipped to weather current volatile times.

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Daily Global Financial Markets Video News August 31 2011

Daily Global Financial Markets Video News August 31 2011

ASX 200 Stocks News: Harvey Norman (HVN)

Harvey Norman (ASX:HVN) is an integrated franchisor, retailer and property entity, operating a slew of retail stores under three leading brand names: Harvey Norman, Domayne and Joyce Mayne.

HVN has been one of the shares to sell in recent times, with the company buckling under the weight of the strong Aussie dollar and declining consumer sentiment.

HVN’s FY11 net profit climbed 9% to $252.3 million.  A final dividend of 6 cents was declared.

Sales were down 1.7% on-year, with HVN suffering from the strong AUD and weak consumer sentiment.

HVN was cautious about the FY12 outlook, citing global volatility, higher utility costs, subdued equity markets and a possible pickup in domestic unemployment.

However the group was anticipating an increase sales leading up to the Rugby World Cup and London Olympics.

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ASX 200 Stocks News: Harvey Norman (HVN)

Harvey Norman (ASX:HVN) is an integrated franchisor, retailer and property entity, operating a slew of retail stores under three leading brand names: Harvey Norman, Domayne and Joyce Mayne.

HVN has been one of the shares to sell in recent times, with the company buckling under the weight of the strong Aussie dollar and declining consumer sentiment.

HVN’s FY11 net profit climbed 9% to $252.3 million.  A final dividend of 6 cents was declared.

Sales were down 1.7% on-year, with HVN suffering from the strong AUD and weak consumer sentiment.

HVN was cautious about the FY12 outlook, citing global volatility, higher utility costs, subdued equity markets and a possible pickup in domestic unemployment.

However the group was anticipating an increase sales leading up to the Rugby World Cup and London Olympics.

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Daily Global Financial Markets Video News August 30 2011

Daily Global Financial Markets Video News August 30 2011

Daily Global Financial Markets Video News August 30 2011

Daily Global Financial Markets Video News August 30 2011

Australian Shares News: Queensland Rail (QRN)

Queensland Rail (ASX:QRN) is Australia’s largest rail freight operator and the world’s largest rail transporter of coal from mine to port for export markets.

QRN is a recent addition to the Australian share market, having floated in November last year.

Today QRN reported a FY11 net profit of $349.5 million, rebounding from a $36.8 million loss a year earlier.

The Queensland flooding earlier this year heavily impacted coal haulage volumes, with many of QRN’s clients yet to experience a return to full production.

QRN was able to generate profit growth primarily due to cost management and operational efficiencies.

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Daily Global Financial Markets Video News August 29 2011

Daily Global Financial Markets Video News August 29 2011

Hot Stocks News: Carsales.com Limited (CRZ)

Carsales.com Limited (ASX:CRZ) is an Australian business offering online access to automotive classifieds.

The company listed on the ASX at $3.92 in September 2009, up 12% from the $3.50 price at which the shares were issued.

Shortly after listing, CRZ was added to the S&P/ASX 200.

It is the largest consumer website in the country which covers automotive, plant machinery, motorcycle, caravan, marine and display advertising.

CRZ operates 23 individual websites which are all specifically focused on different products.

The company has been a fantastic growth story, benefitting from a migration to online advertising.

It has been one of the hot stocks since bottoming out at $3.79 earlier this month, having surged around 30% in the past few weeks.

Tough conditions, not for Carsales

Whilst most consumer sectors struggle in the face of tough economic conditions, CRZ has continued to prosper.

This is mainly because CRZ has been at the forefront of the continuing migration of advertisers from print to online.

Being proactive in identifying market trends has helped CRZ continue to be a clear leader in market share.

Surprisingly, there has been robust growth in new vehicle enquiry volumes despite decreased new vehicle stock availability.

CRZ recently acquired Jumbuck Entertainment’s OZtion assets which is one of the world’s leading developers of mobile phone applications.

FY earnings

CRZ reported a 30% jump in FY underlying earnings to $83.8 million with EBITDA margins at 55%.

Operating cashflow for the period climbed 19% to $60.1 million with operating revenue rising 26% to $152.5 million.

Earnings per share (EPS) increased by 34% to 25 cps while a final FY11 dividend of 10.5 cents per share was declared.

The majority of its revenue (47%) comes from the Dealer division and the Private division which accounts for approximately 20% of revenue.

The period saw continued strong growth in automotive enquiry volumes, up 15% on year.

Looking ahead

CRZ’s FY earnings were highly impressive, convincingly beating guidance. The company is looking to stay ahead of its competitors through the use of mobile devices.

Mobile now accounts for 13% of CRZ’s automotive traffic.

The acquisition of OZtion delivers CRZ a robust and proven e-commerce platform that will complement its growing general classifieds business.

CRZ has introduced significant new product releases with many planned for the coming months.

Its mobile application is expected to continue growing at a strong rate and will be a key area of ongoing focus.

Tough economic conditions remain a key challenge but we feel CRZ has enough upside potential to remain an outperformer, thus making it one of the stocks to watch.

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Daily Global Financial Markets Video News August 26 2011

Daily Global Financial Markets Video News August 26 2011

Consumer Discretionary Stocks News: Aristocrat Leisure (ALL)

Aristocrat Leisure Ltd (ASX:ALL) develops, manufactures and distributes gaming machines and systems in Australia, New Zealand, the Americas, Asia Pacific, South Africa and Europe.

ALL is the largest gaming machine company in Australia and the world's second-largest slot machine maker.

ALL has been one of the shares to sell over the past two years given the macroeconomic challenges it has faced.

Today ALL reported a 1H11 net profit of $24.9 million, down 50% on-year due to the strong AUD and weak global market conditions.

ALL maintained its FY11 guidance of 10% - 20% net profit growth, saying new game releases in North America and Japan, and recent releases in Australia, would partially offset the impact of the strong AUD.

An interim dividend of 2.5 cents was declared.

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Daily Global Financial Markets Video News August 25 2011

Daily Global Financial Markets Video News August 25 2011

ASX Hot Stocks: WorleyParsons (WOR)

WorleyParsons (ASX:WOR) provides professional engineering and management services to the energy, resource and complex process industries.

It offers a broad scope of services, from feasibility studies to design and project services, and is exposed to a number of sectors.

Today, WOR reported a 25% lift in FY11 net profit to $364.2 million, although its underlying result of $298.5 million missed analyst estimates.

WOR was able to grow its earnings despite the impact of the soaring AUD and turmoil in the Middle East.

The group was forecasting good underlying profit growth in FY12, continuing the momentum displayed in the 2H11.

A final dividend of 50 cents was declared.

WOR has been one of the hot stocks in today’s trade, with its almost 10% gain far outpacing the Australian share market.

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Daily Global Financial Markets Video News August 24 2011

Daily Global Financial Markets Video News August 24 2011

ASX Best Shares News: Monadelphous Group (MND)

Monadelphous Group (ASX:MND) is a leading engineering group providing extensive engineering construction, maintenance and industrial services to the mining, energy and infrastructure sectors.

Today MND reported an FY11 net profit of $95.1 million, up 14.2% on-year and beating analyst estimates.  A final dividend of 55 cents was declared.

Sales revenue was grew 13.2%, with all of MND’s divisions contributing to the result amid healthy demand from the resources and energy markets.

Monadelphous Group was bullish about the longer-term outlook, with record levels of capital investment in the mining industry expected over the next few years.

The optimistic forecast has sparked MND, which has been one of the best shares today.

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Daily Global Financial Markets Video News August 23 2011

Daily Global Financial Markets Video News August 23 2011

Shares to Sell News: Bluescope Steel (BSL)

Bluescope Steel (BSL) is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets.

It has been one of the shares to sell in recent times due to the soaring Aussie dollar and surging input costs.

Today, BSL reported an FY11 net loss of $1.05 billion, which was worse than analyst estimates.  No final dividend was declared.

The result was impacted by restructuring costs, although BSL still reported an underlying loss amid the soaring AUD and higher iron-ore and coal prices.

In response, BSL will shut down one of its two blast furnaces, whilst the closure of its export business will result in the loss of 1,000 jobs.

BSL was bearish about the immediate outlook, saying it was expecting a significant net loss in the 1H12 due to the strong AUD, high input costs and weak demand.

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Daily Global Financial Markets Video News August 22 2011

Daily Global Financial Markets Video News August 22 2011

Hot Gold Stocks: Troy Resources NL (TRY)

Troy Resources NL (ASX:TRY) is a junior gold producer with operations at Sandstone in Western Australia and the Andorinhas Gold mine in Para State, Brazil.

The company, which is dual-listed on the Australian and Toronto Stock Exchanges, also boasts the Casposo gold-silver project being developed in Argentina.

TRY has forged a proven record of fast-track mine development., low cost operations, strategic acquisitions and exploration discoveries.

The Casposo mine and processing plant development recently recorded its first gold pour.

TRY has stepped into gold production at the right time, with gold prices repeatedly hitting record highs and driving up prospective gold miners such as TRY.

Operations booming

TRY is involved in gold production through its operations at Sandstone and Andorinhas, with the latter a focus of TRY’s attention over the last year.

Last year TRY acquired the Casposo gold/silver deposit in Argentina, and on 29 September confirmed the commencement of ore processing at the project.

The project has already poured its first gold.

Casposo will support the doubling of TRY’s production and rejoining the plus 100,000oz per annum producer club.

Troy Resources has an aggressive exploration program aimed at increasing Reserves and Resources and nearly all of this exploration expenditure is expensed.

The miner recently announced a high grade drill intercept outside the current Reserves and Resources in the Kamila South East Extension.

TRY is confident it will add to the existing Reserves and extend the mine life past the current planned 6 years.

Quarterly update

For the June quarter, TRY saw a 68% increase in group gold production to 26,382oz at a cash cost of US$496/oz.

For the year, gold production was up 17% to 71,614oz at a cash cost of US$554/oz.

The miner enjoyed record quarterly and annual production at Andorinhas. TRY has its exploration budget at Caposo to $15 million.

Strong cashflow generation saw net debt decrease to just $5.5 million at the end of the quarter.

Looking ahead

With inflation concerns and a weaker US dollar continuing to propel gold prices higher, we feel TRY has plenty of upside potential.

Bullion prices have rocketed this year, and the domestic gold miners have been some of the hot stocks in recent months.

Gold price has repeatedly hit record highs of US$1815.5 per oz last week with forecasts it will keep rising.

Fears over rising debt levels across the US and Europe provide strong support for gold prices.

TRY is committed to pursuing growth through exploration, acquisition of new projects and/or corporate merger activity.

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Daily Global Financial Markets Video News August 19 2011

Daily Global Financial Markets Video News August 19 2011

Australian Shares News: Wesfarmers (WES)

Wesfarmers (ASX:WES) is Australia’s leading conglomerate, and one of the most widely know blue chip stocks in the Australian share market.

Since listing on the ASX in 1984, the company has recorded strong growth in assets and profits.

The company owns several iconic Australian businesses, including supermarket chain Coles, hardware retailer Bunning’s Warehouse, discount department stores Target and K-Mart, and office supplies provider Officeworks. WES also involves in industrials supplies distribution, coal mining, fertilisers, chemicals and general insurance.

Today, WES reported its full year results.

FY11 net profit climbs 22.8% to $1.92 billion, exceeding analyst estimates of a $1.88 billion profit.  A final dividend of $1.50 was declared, also beating estimates.

Coles earnings growth outpaced sales growth, reflecting operational efficiencies at the division.  Kmart and Bunnings also recorded earnings growth.

However, Target EBIT slumped 26.5% due primarily to price deflation and clearance activity.

Revenue at the Coal division grew 25.6% on-year, with record export prices and strong demand offsetting the impact to production from the early-year flooding.

WES was optimistic about the outlook given solid operating fundamentals, but said its outlook was subject to any adverse shocks from the fragile global economy.

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Daily Global Financial Markets Video News August 18 2011

Daily Global Financial Markets Video News August 18 2011

ASX Best Shares News: Brambles (BXB)

Brambles (ASX:BXB) is a leading global provider of support services and is involved in pallet and container pooling services. Pallets are the (usually) wooden frames that goods are stacked on for transport.

Today, BXB reported a 17% lift in FY11 underlying profit to US$857 million.  Revenue grew 13% on the back of net new business across all of BXB’s key markets.

BXB forecast an FY12 underlying profit of US$1,040 to US$1,100 million, although the guidance was subject to economic uncertainty.

The group also declared a final dividend of 13 cents.

BXB has been one the best performing shares in the Australian stock market on the back of today’s profit result.

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Daily Global Financial Markets Video News August 17 2011

Daily Global Financial Markets Video News August 17 2011

Australian Stocks News: Qantas (QAN)

Qantas (ASX:QAN) is one of the world’s leading airlines, an Australian icon and is still seen as one of the market’s blue chip stocks.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

Today Qantas announced a new international strategy in attempt to turn its fortunes around.

QAN will launch two new airlines servicing Asia.  One airline will be a Japanese low-cost carrier, with the other to be a new premium carrier.

1000 job cuts were also announced, although QAN’s unions warned that they will resist the plans.

The stock market was happy with the announcement, sending QAN shares up more than 1% so far.

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Best Stocks News: Newcrest Mining (NCM)

Newcrest Mining (ASX:NCM) is the biggest Australian gold producer on the share market, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US.

Gold remains in high demand due to a volatile US dollar and economic uncertainty, and as a result NCM has been one of the best stocks in the past few months.

Today, NCM reported a 63% surge in FY11 net profit to $908 million, driven mainly by surging gold prices and the production jump from its Lihir acquisition.

A final unfranked dividend of 20 cents was declared, in addition to a special unfranked dividend of 20 cents.

Underlying profit was up 36% on-year to $1.06 billion, coming in slightly ahead of analyst estimates.

NCM grew its FY11 output 43% to 2.5 million ounces of gold, and forecast FY12 production of 2.775 million – 2.925 million ounces.

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Daily Global Financial Markets Video News August 15 2011

Daily Global Financial Markets Video News August 15 2011

Stock of the Week: McMillan Shakespeare (MMS)

McMillan Shakespeare (ASX:MMS) is the leading provider of independent salary packaging services in Australia.

The group’s primary services include: salary packaging, remuneration policy design, motor vehicle lease management, information retrieval, procurement of motor vehicles and finance and administration of fuel card and service maintenance programs.

MMS occupies a unique market position: it is the only integrated provider of salary packaging and “company car” solutions, and its services are seeing a lot of demand.

Recent acquisitions have helped MMS win new lucrative business contracts.

The benefits are reflected in its strong business momentum which saw MMS report solid first half earnings.

The salary packaging scene

Salary packaging is a lucrative business. Australia’s taxation system allows tax concessions for certain employee benefits and for certain industry sectors, which makes salary packaging attractive.

Eligible employees increase their disposable income by using pre-tax salary to pay for goods or services. They also use these benefits to attract and retain staff in a tight employment market.

Existing payroll systems do not cope well with salary packaging, and this is where MMS comes in.

McMillian Shakespeare administers budgets; deducts pretax salary; makes payments to service providers on behalf of an employee; and accurately reports transactions for tax purposes.

A high transaction load, a complex business process and the tax implications leads many employers to outsource this task to MMS.

Likewise, fleet management is a complex and capital intensive task. Many corporations choose to outsource management and/or lease their fleet using MMS.

First Half results

MMS saw its NPAT and EPS for the first half rise 83% on year. NPAT for the period came in at $20.5 million and EPS at 30.3 cents per share.

An interim dividend of 16 cents per share was declared, up from 10 cents a share on year.

Its Asset Management business recorded a NPAT of $6.6 million.

First half performance in its asset management segment exceeded expectations.

Asset Management capability has opened up significant new opportunities in the private sector for Group Remuneration Services. This has been a largely untapped market for MMS.

The company has been focusing on integration; maintaining momentum in its core business; and disciplined prioritisation of tasks and opportunities.

New business wins and cross sells continue to build momentum.

Looking ahead

MMS runs a unique business that is able to grow even during economic downturns, with the market running at 3-8% per annum.

A combination of the Group Remuneration Services business with the Asset Management business is helping to create a different and more capable organisation.

The company has been able to capitalise on demand for salary packaging and fleet management services, which involve a complex business process as well as tax implications, leading many employers to outsource this task to MMS.

Continued, disciplined development of its core business combined with increasing participation rates within its existing customer portfolio will help MMS going forward.

The company’s FY11 earnings may expectations given the typical seasonal bias favouring the second half of the year.

MMS has been one of the shares to buy since early 2009 and future growth will be sustained by the group’s alliance with big-name (including government) clients and new contracts.

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Daily Global Financial Markets Video News August 12 2011

Daily Global Financial Markets Video News August 12 2011

Shares to Buy News: Telstra (TLS)

Telstra (ASX:TLS) is a provider of telecommunications and information products and services, arguably best known as Australia’s dominant telco company.

Despite its troubles in recent years, TLS is a staple holding among retail investors and is still widely considered a blue chip stock.

Its principal activities are the provision of telephone lines; national local, and long distance, and international telephone calls; mobile telecommunications; data; internet and on-line; wholesale; telephone directories; and pay TV.

Today, TLS reported a 16.8% decline in FY11 net profit to $3.23 billion, although the result topped analyst expectations of a $3.09 billion profit.

Total revenue grew 0.7% on-year, whilst EBITDA fell 12.4%, matching TLS’ previous guidance.  A final dividend of 14 cents was declared, bringing the full year dividend to 28 cents.

TLS forecast a similar full year dividend in FY12, but this time was expecting low single digit growth in revenue and EBITDA.

The group based its forecast on the recent improvement in customer satisfaction as well as initiatives to simplify the company.

TLS has been one of the shares to buy today following the release of its results.

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Daily Global Financial Markets Video News August 11 2011

Daily Global Financial Markets Video News August 11 2011

Blue Chip Shares News: Commonwealth Bank (CBA)

Commonwealth Bank (ASX:CBA) is the nation’s largest bank by market capitalisation, holds the greatest amount of deposits, the most home loans, and also controls a fair chunk of the wealth management market with its Colonial First State behemoth.

It is the second biggest company in the Australian share market, and is widely considered a blue chip stock among investors.

Today, CBA reported a FY11 cash profit of $6.84 billion, up 12% from the prior year.  The profit growth helped return on equity improve to 19.5%.

The result slightly topped analyst estimates of a $6.82 billion profit, whilst its final dividend of $1.88 also came in ahead of expectations.

Net interest margin of 2.19% was up from 2.13% in the FY10, with the group improving its funding mix.

CBA warned that credit growth was likely to remain slow over the next few months and that funding costs could rise due to the recent market turmoil.

The bleak outlook didn’t have a negative impact on CBA shares, which have opened solidly higher.

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Daily Global Financial Markets Video News August 10 2011

Daily Global Financial Markets Video News August 10 2011

Australian Shares News: JB Hifi (JBH)

JB Hifi (ASX:JBH) stores offer the world’s leading brands of hi-fi, speakers, televisions, DVDs, cameras, car sound, home theatre, computers and portable audio and specialist hi-fi products.

JBH is Australasia’s fastest growing and largest retailer of home entertainment, and boasts one of the best low-cost business models in the retail sector.

Yet despite its growth, JBH has been one of the shares to sell in recent months as it contends with a soaring Aussie dollar and the growth of online retailing.

Today, JBH reported a 7.6% drop in FY11 net profit to $109.7 million.  A final dividend of 77 cents was declared.

The result was impacted by a $24.7 million write-down of its Clive Anthony stores, with underlying earnings actually rising 13.3% to $134.4 million.

Sales increased 8.3% despite challenging trading conditions, which JBH expects to persist into FY12.

Despite the uncertain outlook, JBH was anticipating 16 new stores to be opened in FY12 and sales to be 8% higher than the FY11.

The solid result has limited the falls in JBH’s share price today, with the stock so far outperforming the Australian share market.

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Daily Global Financial Markets Video News August 8 2011

Daily Global Financial Markets Video News August 8 2011

Australian Stocks to Watch: Harvey Norman (HVN)

Harvey Norman (ASX:HVN) is an integrated franchisor, retailer and property entity, operating a slew of retail stores under three leading brand names: Harvey Norman, Domayne and Joyce Mayne.

Together, these stores sell computer hardware and software, furniture, bedding, electrical appliances, floor coverings, and kitchen and bathroom renovations and items.

Retailers were struggling over the global economic downturn, particularly hit throughout 2008 as high interest rates, climbing unemployment and sluggish consumer spending took a toll.

The trend is now continuing as external environmental pressures, and recent concerns that retail spending is slowing down in Australia has negatively hit HVN’s stock.

Pressure from a rising Aussie dollar and online retailing has seen HVN become one of the shares to sell in recent times.

Challenging market

We have already seen a slowing in consumer spending as rising interest rates put pressure on consumer spending. Making matters worse is the fact that the banks have raised interest rates by more than what the Reserve Bank (RBA) has done.

Yesterday, the RBA left the official cash rate at 4.75% against the backdrop of global market uncertainty.

The central bank noted that asset prices had softened in recent months and consumer demand was likely to remain weak in the near term.

We saw new home sales slumped 8.7% from May to June, as Australians grew worried over the global economy and the potential for further interest rate hikes.

The huge decline in home sales provides further evidence of a struggling housing market, and raises concerns over the impact of another rate hike on the economy.

Being also involved in furniture and other appliances, this news hurts HVN’s business.

All the major banks have signalled concerns over slowing credit growth and subdued business and consumer spending.

The effect has taken a toll on the most of the retailers. Recent jobs data showing a huge drop in full time jobs also presents further downside for the retailer.

The rising Aussie dollar has seen consumers shift towards purchasing products from overseas retailing websites. This has impacted on sales at the local retailers and has put pressure on prices and margins for operators like HVN.

Deflating profits

In February, Harvey Norman announced a 17% slump in 1H11 net profit to $131.7 million.  The fall in profit was attributable to price deflation, a strong Aussie dollar and the wet weather impact on sales.

Revenue grew 12.4% to $804.1 million however sales were impacted by consumer caution due to last year’s interest rate hikes.

HVN’s outlook was positive despite economic and market headwinds.  A final dividend of 6 cents was declared, down from 5 cents a year earlier.

HVN reported a 1.4% on-year increase in sales for the nine months ending March 31, 2011.

However, like-for-like sales fell 3.5% in the same period. HVN said the poor result was attributable mostly to adverse currency movements.

Looking ahead

A weak consumer environment implies sales growth is likely to remain subdued in the medium term.

Retail figures continue to disappoint on the back of subdued business and consumer figures.

Other factors such as increasing online retailing due to a stronger Aussie dollar have hurt the sector.

The rise and rise of online retailing has also hurt HVN and its peers. Gerry Harvey has been particularly vocal about the threat of online retail to his business model and continues to put pressure on the government to take action.

Unfortunately for the retailers, with the Aussie dollar as strong as it is, shopping online is becoming increasingly cheaper.

Harvey Norman will thus be one of the stocks to watch in the near future, as it is likely to continue facing these headwinds.

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Daily Global Financial Markets Video News August 5 2011

Daily Global Financial Markets Video News August 5 2011

All Ordinaries Shares News Leighton Holdings (LEI)

Leighton Holdings (ASX:LEI) is one of the world’s major contracting, services and project development organisations, and also the world’s largest contract miner.

It has been one of the shares to sell from the beginning of 2010, having lost almost 50% of its value since then.

Today, LEI lowered its FY11 net loss guidance to $408 million, from the previous $427 million.

LEI was also expecting to swing back to a $600 - $650 million profit in the FY12, driven by the expected completion of the Brisbane Airport Link.

The group was also more confident in its contracting divisions, which are winning a lot of new work in Australasia.

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Daily Global Financial Markets Video News August 4 2011

Daily Global Financial Markets Video News August 4 2011

Industrial Stocks News Downer EDI (DOW)

Downer EDI (ASX:DOW) specialises in the engineering, construction, telecommunications, mining and resource sectors in Australia, New Zealand and the greater Asia Pacific region.

It has been one of the shares to sell in recent times, having shed more than 50% of its value since January 2010.

Today, DOW stated it has been approached by parties looking to purchase its consultancy practice – CPG Asia, CPG Australia and CPG New Zealand.

DOW is currently conducting a review to optimise its business structure.

DOW shares have slumped around 2% so far, mirroring the fall in the stock market.

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Daily Global Financial Markets Video News August 3 2011

Daily Global Financial Markets Video News August 3 2011

Hot Stocks Kathmandu (KMD)

Kathmandu (ASX:KMD) is a clothing and equipment provider for the travel and adventure market.

Today, KMD reported a 24.5% increase in sales for the FY11, defying what has generally been a gloomy year for retailers.

Kathmandu faced tough trading conditions, but was able to grow sales due to better inventory management, favourable weather patterns and healthy results from its new stores.

KMD has been one of the hot stocks in what has otherwise been a bearish day for the Australian share market.

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Daily Global Financial Markets Video News August 2 2011

Daily Global Financial Markets Video News August 2 2011

Australian Mining Shares News Macarthur Coal (MCC)

Macarthur Coal (ASX:MCC) is a coal miner, supplying low volatile pulverized coal injection coal (PCI coal) to the steel mills of Asia, Europe and Brazil as well as some thermal and coking coal.

Its primary focus is production at the Coppabella and Moorvale coal mines located near Moranbah in Queensland’s Bowen Basin, which together provide approximately 47% of the PCI coal exported from Australia.

Today, MCC rejected a revised $16.00 a share offer from Peabody Energy and Arcelor Mittal.

The new bid, which values MCC at $4.84 billion, trumps the previous offer of $4.73 billion.

However, MCC knocked back the bid, saying instead it was prepared to accept an offer of $5.68 billion ($18 a share) once the two suitors acquired over 90% of the company.

MCC was one of the hot stocks when news of the initial takeover broke on 11 July.  Its shares surged 37% the next day, making it one of the best performers in the stock market.

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Daily Global Financial Markets Video News August 1 2011

Daily Global Financial Markets Video News August 1 2011