Major central banks have been injecting liquidity into the market.We think we're gonna see major buying of the Australian dollar,driving it up to 1.11,said Todd Elmer of Citigroup.
Billabong International has received a takeover bid of A527 million dollars/US554 million from Sycamore Partners and Paul Naude.The Australian apparel group had cut its earnings forecast by up to 49% on weaker than expected holiday sales and restructuring costs.
Australian Minister of Trade Craig Emerson said the country's budget surplus should return by 2014.Although it would be unlikely,a surplus could possibly happen as early as 2013 if household spending continues to improve.There are good signs in car sales,the housing market and the retail industry.
The Labour government had originally promised to achieve a budget surplus in 2013,but has just revised the pledge to 2014,based on a shortfall in tax revenue because of global economic weakness,lower commodity prices and a higher Australian dollar.
The ASX 200 index closed at 4635.20,up 0.25% in shortened Christmas Eve trading.Australian stocks are at their highest valuation in 17 months,but trading volume was extremely light-off 70% in the pre-holiday session.
Russian President Vladimir Putin is on a one day trip to India.India is Russia's leading arms customer and Mr.Putin will sign 7 billion dollars in arms deals on his visit,including outright purchases and joint development plans.The Nifty Fifty stock index rose 0.48% in early Monday trading.
iShares Australia Index Fund(EWA),iShares Nifty 50 Index Fund(INDY)
Showing posts with label Billabong. Show all posts
Showing posts with label Billabong. Show all posts
Monday, December 24, 2012
Monday, August 27, 2012
Asia This Day:Billabong Struggles With Tough Conditions
Australian clothing retailer Billabong has suffered its first fiscal year loss since going public in 2001.The group reported the net loss of 275.6 million dollars,and a revenue decline of 7.6%,on Monday.At the same time,it claimed a net profit ex-items of 33.5 million on global sales of 1.55 billion.
The group had hired Goldman Sachs to analyse its situation.Among its problems were poor sales in Europe and Australia;online competition for its brick and mortar stores;and rising raw materials costs.At its height,it operated about 700 stores worldwide.
CEO Laura Inman said that,at an underlying trading level,the Group remains profitable.As previously flagged to the market,the Group's results have been adversely impacted by various significant and exceptional items.In response,the Group has endeavoured to adopt a conservative position,implementing initiatives that will target both cost savings and revenue growth.
Billabong has sold part of its Nixon accessories brand;closed 58 underperforming stores;and reduced costs.It has also identified a further 82 non-performing stores for closure in FY 13.Cost savings of about 30 million are expected to be realised in 2013 from initiatives implemented in 2012.
The Group intends to simplify its business;leverage its Billabong brand;realise the strategic potential of retail;continue to expand Billabong's global e-commerce platform;and globalise and integrate the supply chain.The current challenging trading conditions are expected to continue in FY 13.
There will be no final dividend for FY 12,and none are expected to be paid for the first half of FY 13.Billabong had sold a 48.5% stake of its Nixon brand to Trilantic Partners,plus a further 3% to management,in order to stabilise its balance sheet and fend off an unsolicited bid by TPG Partners.
Billabong produces and markets sportswear and casual clothing,including surfwear,outerwear and accessories.
Billabong International Ltd(ASX:BBG),Goldman Sachs(GS)
The group had hired Goldman Sachs to analyse its situation.Among its problems were poor sales in Europe and Australia;online competition for its brick and mortar stores;and rising raw materials costs.At its height,it operated about 700 stores worldwide.
CEO Laura Inman said that,at an underlying trading level,the Group remains profitable.As previously flagged to the market,the Group's results have been adversely impacted by various significant and exceptional items.In response,the Group has endeavoured to adopt a conservative position,implementing initiatives that will target both cost savings and revenue growth.
Billabong has sold part of its Nixon accessories brand;closed 58 underperforming stores;and reduced costs.It has also identified a further 82 non-performing stores for closure in FY 13.Cost savings of about 30 million are expected to be realised in 2013 from initiatives implemented in 2012.
The Group intends to simplify its business;leverage its Billabong brand;realise the strategic potential of retail;continue to expand Billabong's global e-commerce platform;and globalise and integrate the supply chain.The current challenging trading conditions are expected to continue in FY 13.
There will be no final dividend for FY 12,and none are expected to be paid for the first half of FY 13.Billabong had sold a 48.5% stake of its Nixon brand to Trilantic Partners,plus a further 3% to management,in order to stabilise its balance sheet and fend off an unsolicited bid by TPG Partners.
Billabong produces and markets sportswear and casual clothing,including surfwear,outerwear and accessories.
Billabong International Ltd(ASX:BBG),Goldman Sachs(GS)
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