Stocks to watch: BPL, FPA, GFF, HBY, LPC, NZX, PGC, SGL, TUR

Stocks to watch: BPL, FPA, GFF, HBY, LPC, NZX, PGC, SGL, TUR, WDT

March 1 (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: New Zealand's economic growth looks set to be all but wiped out due to spiking global petrol and food prices along with the impact of the second Christchurch earthquake, according to a report by the New Zealand Institute of Economic Research. It puts growth estimates for the year at 0.3% compared to its earlier forecast of 2.3%. Global equity markets shrugged off ongoing tensions in the Middle East despite the growing prospect of civil war in Libya. On Wall Street, the Standard & Poor's 500 Index rose 0.4% to 1325.25, while Europe's Stoxx 600 rose 0.8% to 286.47.

Broken Hill Prospecting Ltd. (BPL): The newly-listed mineral prospecting company today reported a net loss of A$206,569 for the six months to Dec. 31, compared to a loss of A$29,608 in the previous year. The company said the increased loss margin was due to higher administration expenses and costs of listing on the ASX and NZX. The shares were unchanged yesterday at 28 cents.

Fisher & Paykel Appliances Holdings (FPA): The whiteware manufacturer has tapped former Meridian Energy chief Keith Turner to replace outgoing chairman Ralph Waters, ahead of its full-year results. Turner was appointed a director last November, and will chair the board from today. Waters flagged his retirement at last year’s annual meeting, ending nine years on the whiteware manufacturer’s board. Fletcher Building Ltd. chief financial officer Bill Roest will fill Waters’ board seat. The shares were unchanged yesterday at 57 cents.

Goodman Fielder Ltd. (GFF): The Australian food ingredient maker fell 0.6% yesterday to $1.68 after it said earnings growth would likely stall in the full year, given uncertain trading conditions and the impact of the floods in Australia and the Christchurch earthquake. The company posted a 3.1% gain in first-half profit of A$93.1 million in the six months ended Dec. 31, from A$90.3 million in the previous year. Sales fell 2.2% to A$1.34 billion. The company will pay an interim dividend of 5.25 Australian cents a share, unchanged from a year earlier.

Hellaby Holdings (HBY): The investment holding company posted a $5.5 million net profit for the six months ended Dec. 31, up from $2.3 million in the same six months a year earlier which had included a $1.2 million recovery from its ill-fated investment in the BBQ Factory. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 50.9% to $14.6 million. Sales rose just 1.9% to $223.6 million. The shares fell 2.3% yesterday to $2.10.

Lyttelton Port Co. (LPC): The post operator has served state-owned coal miner Solid Energy New Zealand Ltd. with a force majeure notice following the Christchurch earthquake. The notice comes after the company said the second quake in almost six months added to its damage, but most operations would be up and running within 10 days. The shares fell 4.6% yesterday to $2.10

NZX Ltd. (NZX): The stock exchange operator reported earnings before interest, tax, depreciation, amortisation and financial instruments for the 12-months to Dec. 31 rose to $20.9 million, from $17.6 million a year earlier. That was due to the launch of a new clearing house, the widening of its offering to include commodity contracts in New Zealand and Australia, and the acquisition of agricultural media and data businesses. The diversification has helped make up for the continued decline of listings and securities information. Net income fell to $9.3 million from $38.7 million, reflecting a $31.5 million gain from the sale of TZ1 in the previous period. Sales rose 17% to $50.2 million. The shares rose 5.6% yesterday to $1.70.

Pyne Gould Corp. (PGC): The financial services company reported a first-half loss in its last result before the spin-off of Marac Finance, after the firm wrote-down the value of its stake in PGG Wrightson, recognised costs for the restructuring and increased its charge for impairments. The net loss was $37.2 million, or 5 cents a share, in the six months ended Dec. 31, from a year-earlier profit of $10.1 million, or 3 cents. Operating income fell to $43 million from $49.5 million. The shares were unchanged yesterday at 31 cents.

Speirs Group Ltd. (SGL): The food technology reported a net loss of $634,000 for the six months to Dec. 31, substantially lower than the $5.1 million in the previous period, as ongoing costs related to its SNP Omega 3 partnership in the U.K. weighed on earnings. The company said it is looking to sell its 61% stake in the partnership for £1 million, which will recoup some of the costs. The shares were unchanged yesterday at 12 cents.

Turners & Growers Ltd. (TUR): The fruit and vegetable exporter controlled by Guinness Peat Group posted a 34% drop in full-year profit after a tax expense that wiped out growth in operating earnings. Net income in the 2010 calendar year fell to $6.3 million, or 4.4 cents a share, from $9.5 million, or 7.62 cents, a year earlier. Sales rose 1.6% to $599 million. The latest results include a building depreciation tax expense of $5.1 million that wasn’t in the year-earlier figures and a $3.4 million write-down in the value of its 50%-owned Inglis Horticulture. The shares fell 0.6% yesterday to $1.68.

Wellington Drive Technologies Ltd. (WDT) The electric motor manufacturer posted a $14.8 million net loss for calendar 2010, wiping out most of the $16.1 million of new capital it raised during the year. The latest loss was below 2009's $16.7 million but the company said it was significantly greater than expected due to weaker than expected gross margins. Net cash outflow from operations was $17.4 million for the year, up from $10.1 million the previous year. The company had $2.9 million in cash by year's end. The shares unchanged at 2 cents yesterday.

(BusinessDesk)

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