Stocks to watch: AIR, CEN, FPH, FBU, NWF, SLG, TEN
Aug. 22 (BusinessDesk) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.
Themes of the day:
Earnings season continues today with Contact Energy Ltd. posting flat earnings in the latest financial year. Hellaby Holdings, Nuplex Industries Ltd., and NZ Refining Co., which are also due to announce their latest results.
A lack of local data scheduled for release means the tone of the equity market is likely to follow bearish offshore markets which fell on renewed recession fears. On Wall Street, the Standard & Poor's 500 Index fell 1.5% to 1,123.53, and Europe's Stoxx Index dropped 1.6% to 223.13.
Air New Zealand Ltd. (AIR): The national carrier last week signaled its intention to raise up to $150 million in five-year bonds next month. The unsecured, unsubordinated fixed-rate bonds would have a maturity date of Nov. 15, 2016, the company said in a statement to the NZX. Air NZ shares fell 1.8% on Friday to $1.08.
Contact Energy Ltd. (CEN): The country's biggest listed electricity company today reported underlying earnings after tax of $150.9 million for the 12 months ended June 30, up from $149.8 million last year. EBITDAF (earnings before interest, tax, depreciation, amortisation and unrealised fair value movements) was $441.4 million, up 3% from $from the previous financial year. Contact shares were unchanged on Friday at $5.02.
Fisher & Paykel Healthcare Corp. (FPH): The manufacturer of breathing masks and respirators announced last week it will expand production in Mexico and target sales growth in other currencies in a bid to limit its exposure to strong New Zealand dollar. The company currently earns about 50% of its revenue in U.S. dollar terms, which has dropped around 6% against the kiwi so far this year. F&P Healthcare shares rose 1.7% on Friday to $2.38.
Fletcher Building Ltd. (FBU): The country’s biggest listed company has won part of the government contract as part of a consortium to building the $1.3 billion Waterview Connection project. The contract group is made up of Fletcher Construction, McConnell Dowell, Obayashi Corp. and three design companies, Beca, Parsons Brinkerhoff, and Tonkin and Taylor. Fletcher shares fell 2% on Friday to $7.79.
NZ Windfarms Ltd. (NWF): The windfarm developer announced it has entered into a deed with troubled wind turbine manufacturer Windflow Technology Ltd. to restructure the operations and maintenance arrangements for the Te Rere Hau windfarm. As a result it has acquired a stock of strategic spares for their fleet of 97 WF500 turbines, previously held by Windflow. NWF shares were unchanged at 15.3 cents on Friday.
Sealegs Corp. (SLG): The amphibious boat maker opened its first overseas showroom in Boston in a bid to tap the lucrative recreational boat markets in Nantucket, Martha's Vineyard, Long Island and Cape Cod. The company said the U.S. is its largest market account for between 20% and 45% of total sales. Sealegs shares were unchanged at 15 cents on Friday.'
Tenon Ltd. (TEN): The mouldings manufacturer reported a full-year loss as sales fell, costs rose and it recognised a tax expense. The loss was US$2 million in the year ended June 30, from a profit of US$2 million a year earlier. Revenue fell to $326 million from $329 million. Operating earnings fell to $8 million from $12 million. Tenon shares rose 8.2% on Friday to 66 cents.