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Business Description: Transfield Services Limited (TSE) is a provider of Operations and maintenance, asset management, project and capital management outsourcing and infrastructure development services. TSE operates in Australia, New Zealand and the Americas (comprising the USA, Canada and Chile.TSE business units include Infrastructure; Defence, Social and Property; Resources and Industrial.
Strategy Analysis: TSE holds strong market share in Australia and NZ in outsourced asset maintenance. Contracts are usually of medium to long term duration across numerous industries such as power, rail, road, oil and gas, minerals, oil refineries, petrochemicals, water utilities and telecommunications. The willingness to establish alliance-style contracts allows the company to extend its skills to new areas. Solid cash flows and balance sheet support a strategy of growth via acquisition. Most customers are blue-chip and there are solid growth prospects.
Transfield Services reported a net loss of $246.91m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.75bn, up 15% from the same period last year. Basic and Diluted EPS was (48.0) cents compared to 6.0 cents last year. Net operating cash flow was $30.65m compared to $25.64m last year. The interim dividend declared was 3.0 cents compared with 5.0 cents last year. A return to earnings growth for the group is expected in FY14, driven by: further overhead reduction flowing from the flatter ANZ organisation structure and integration of Easternwell in the ANZ Resources & Energy business; a program to identify and streamline contract overheads; a detailed operating model review to increase productivity and service level effectiveness; and optimisation of procurement and purchasing repetitive processes through automation or outsourcing.
By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 |
Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.
By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 |
Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.
By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 |
In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.
By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 |
Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.
By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 |
Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.
BR Securities Australia Pty Ltd 2/12/2014 |
December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.
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