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 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.
(BusinessDesk)