Week in review

Friday 25th October 2002

Tranz Rail Holdings booked a $58.3 million profit on last year's sale of the Auckland rail corridor to the government, its annual report has revealed. The government agreed in December last year to pay Tranz Rail $81 million for the assets, which a confidential Grant Samuel independent report had valued at $10-20 million.

Auckland City Council ruled out a public offer of its Auckland International Airport shares, leaving a sale to trade or professional investors as the two options. A public offer would have required the signatures of all councillors but the council's left wing faction refused to sign.

Steel & Tube Holdings' annual meeting heard the September first quarter profit was up 21% on the previous year, due mainly to the inclusion of the new piping systems unit. Chief executive Nick Calavrias expressed "cautious optimism" for the rest of the year.

Ebos Group said first quarter trading was ahead of both budget and earnings for the same period a year ago. Chairman Philip Burdon told the annual meeting the company was relatively insulated from economic fluctuations.

Fishing company Sanford posted a $37 million August-year profit, well ahead of analysts' forecasts and up from $30 million a year ago.

The Stock Exchange said it was "unlikely" to cap Telecom's weighting on the new NZSE50 index. Some market participants have argued Telecom influences indices too much while others feel the company shouldn't be penalised for being big.

Auckland lines company Vector secured 90% of UnitedNetworks and said it would move to compulsory acquisition. Three Auckland councils sold their combined 10.8% stake for Vector's offer price of $9.90 a share.

Tranz Rail Holdings announced a $7.2 million September first quarter loss. The quarter is traditionally the company's least profitable.

Australia & New Zealand Banking Group announced a $A2.3 billion ($2.6 billion) September year net profit. ANZ New Zealand's profit was up 19% to $A330 million.

Telecom's Australian cash disposal company AAPT is now cashflow positive, chief executive Theresa Gattung said. Earnings before interest, tax, depreciation and amortisation for the 2001/02 year were in the black.

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