Profitable, less leveraged firms gain more as markets rebound Oct 21, 2009
The report, which studies companies in the MSCI Global Index, points out the ratio of capital expenditure (capex) to revenue dropped for the first time in five years last year as sales declined across all sectors. The cutback in capex was disproportionately concentrated among the most capital-intensive companies within their sectors, with equity markets rewarding firms that maintained above-median capex levels throughout the crisis, with a 0. (The Star Online, Malaysia -- Business)
How to detect early financial warnings in companies Oct 21, 2009
The capital expenditure requirements were well above the companies borrowing capacities. Besides, the time required to turn the projects into profits might be too long. Nevertheless, as a result of the announcements, the stock prices would surge and normally, the main sellers behind might be the key owners. (The Star Online, Malaysia -- Business)
Eskom must raise debt to spread cost of expansion fairly Oct 20, 2009
Eskom's understandably inadequate balance sheet, given the scale of its capital expenditure programme, should not be allowed to influence electricity prices ... It appears that a vast capital expenditure programme by a government agency to produce electricity over the next 30 years is to be funded to a large and unnecessary degree from current consumers. (Business Report, South Africa)
Coega 'collapse' cheered Oct 19, 2009
"The details of these deals are still hidden away from public scrutiny, despite the public being asked to bear 45 percent annual increases over the next three years. Earthlife Africa's research had concluded that Eskom could not be a self-funding utility. Nor could it internally finance capital expenditure unless industrial tariffs were raised and the practice of selling below cost of production was halted. "To do this, the contracts between Eskom and its intensive users (inside and outside the... (iAfrica.com)
Shift in video rental habits increases retail vacancies Oct 19, 2009
These empty stores are becoming a capital expenditure for property owners, since many will have to be remodeled and reconfigured to attract new tenants, Wald said. According to Charlie Wolf, senior analyst of digital lifestyle at Needham & Co., a New York-based investment banking and asset management firm, Blockbuster Inc. is grappling with sizable debt along with stiff competition from Redbox and Netflix. (San Jose Business Journal, CA)
Chinese auto companies get scent of Indian market Oct 14, 2009
Chinese automakers have grown by adopting practical and frugal strategies when deciding capital expenditure on their plants: Many facilities have manual assembly lines, developed at a low cost, that deliver quality and productivity. Some analysts say that China will be, in the next decade, what Japan was to the auto industry in the 1980s and South Korea in the 1990s, said an auto analyst at a Mumbai-based brokerage. (India Times)
Dressed to sell Oct 14, 2009
This will require capital expenditure, increase competition and put pressure on profits. Consumer spending held up well throughout the financial crisis and the outlook is better than expected, all of which supports the outlook for growth. (Sydney Morning Herald -- Business)
High CPO price hurting biodiesel industry Oct 14, 2009
To settle this issue amicably, the Government will need to fork out a reasonable level of capital expenditure for the setting up of more mixing depots nationwide. For now, the Klang Valley supply depot is used as the nerve centre to blend the B5 and distribute it to various sub-depots at government agencies like the Kuala Lumpur City Hall and the Defence, Works and Health Ministries. (The Star Online, Malaysia -- Business)
Govt’s biodiesel programme hits a speedbump Oct 13, 2009
This is particularly so in terms of capex (capital expenditure) needed to support the sustainability of palm biodiesel and the survival of the struggling local biodiesel producers, the source said. The source also said the Government needed to quickly iron out the biodiesel payment mechanism either via the automatic price mechanism (APM) to be regulated by the Finance Ministry based on reports from petroleum companies or the direct contract method, whereby payment is made based on reports from... (The Star Online, Malaysia -- Business)
SouthGobi Energy Resources Increases Its NI 43-101 Compliant Measured and Indicated Coal Resource Base in Mongolia by 39% From 221.2 Million Tonnes to 307.6 Million Tonnes Oct 13, 2009
As SouthGobi progressed with efforts to prepare for the mining and shipment of the targeted 30,000 tonne trial cargo from Mamahak, the company became aware of the requirement for additional capital expenditure beyond what was originally budgeted to develop the project. With that in mind, SouthGobi has determined to suspend further development works at Mamahak pending a more detailed operational review. (CCNMatthews Press Releases)
Massmart to spend R380 million on expansion Oct 10, 2009
Massmart said it would use half of its planned R760 million capital expenditure for 2010 on acquisitions and new stores and the other half on maintaining current operations, chief executive Grant Pattison told Reuters in an interview. "We typically acquiring large independent retailers who service the lower income groups in food retail", but could not name the targets. (Business Report, South Africa)
SA's power 'cheap'? Oct 10, 2009
Eskom was engaged in a capital expenditure programme of R385-billion. "This is four times the size of the Gautrain project," he said. (iAfrica.com)
A special pharmacy Oct 7, 2009
Largest capital expenditure: This year, Todoro will spend about $18,000 to upgrade a software system for clients that allows for digital prescriptions. An electronic order system comes next. (Buffalo Business First, NY)
Pioneer Drilling credit facility amended Oct 7, 2009
Separately, Pioneer s Board of Directors has approved an increase for the company s 2009 capital expenditure budget from $65. 2 million to $80. (San Antonio Business Journal, TX)
Economists expect cuts in Government operating expenditure Oct 1, 2009
The Government will need to look into areas where they can reduce operating expenditure, in other words theyll need to trim down the excesses and be focused on the spending, Lee said, noting that as revenues would be affected by the economic slump, there was a need to cut back on its commitments via lower expenses and capital expenditure. Kenanga Investment Bank Bhd economist Wan Suhaimie Saidi said the Governments move to cut back on operating expenditure could be in anticipation of... (The Star Online, Malaysia -- Business)
Press Release: Statement by an IMF Staff Mission to Benin Sep 30, 2009
"The global economic crisis has adversely affected the near term prospects of the Beninese economy. Real GDP growth is projected to slow to 2.5 percent in 2009, a decline from 5.0 percent in 2008 due to the weak prospects for cotton and trade with neighboring countries. Inflation has declined because of lower agricultural prices, thanks to a good cereal harvest, and lower international food and fuel prices. On the other hand, the external current account deficit, excluding grants, is expected to... (IMF News)
Running out of road Sep 30, 2009
This is the case for the part of the economy focused on production - as typically order volumes rise, prices of certain goods rise, investments in capital expenditure rise before finally factories start employing more people; but it is incorrect for the consumption part of the economy. For the US and certain countries in Western Europe (Britain, France, Spain and so on), consumption is typically over half to three-quarters of total GDP; and to the extent that jobless people don't tend to spend a... (Asia Times Online)
PBC sets up subsidiary company to deal in Shea butter Sep 26, 2009
He said the government, a majority shareholder in the company, would assist management to contract a 10-million-dollar loan to finance the Shea processing plant, capital expenditure and other logistics. Referring to a recent United States Agency for International Development (USAID) report, Nana Aye Kusi expressed concern about Ghana's Shea kernels that had high concentration of Shea butter but only 58 per cent of Shea nuts were either collected or utilised. (Ghana Web, Ghana)
Osisko Mining Corporation Enters Into Financing Agreement With CPPIB Credit Investments Inc. Sep 25, 2009
Sean Roosen, President and CEO of Osisko, commenting on the agreement, noted: "We are pleased to have CPPIB as a financial partner in establishing Osisko as a premier intermediate gold producer. This financial package allows us to fulfill the terms of the previously announced Societe generale de financement du Quebec financing agreement and completes the funding requirements to build the Canadian Malartic project. The discretionary tranche of the agreement will allow the Company to meet... (CCNMatthews Press Releases)
Cipla mops up Rs 671 cr through QIP Sep 24, 2009
A person close to the company said Cipla would require capital expenditure of around Rs 600 crore this financial year and the companys debt stands at Rs 940 crore. Around Rs 920 crore of debt is repayable this year. (India Times)
How to analyse an annual report Sep 23, 2009
Most companies need to increase borrowings to support their capital expenditure on any business expansion. However, if a company has been increasing its borrowings each year and the level has far exceeded one to two times the shareholders funds, unless its operating activities are able to support the repayments, the company faces very high financial risk. (The Star Online, Malaysia -- Business)
Tomyn Office Park, LLC Has Selected PrismOne to Provide Multi-phased Technology Services Sep 21, 2009
PrismOne solutions significantly minimize or remove technology capital expenditure, driving savings to the bottom line while maximizing flexibility and efficiency. The company has enjoyed rapid growth with no external marketing over the past two years and PrismOne intends to take advantage of the capital in the equity markets to enhance scalability of the company model. (Primezone Releases)
Opposition 'must back' funds call Sep 20, 2009
A significant first step would be for other parties to endorse our call for a further acceleration of capital expenditure ... "A significant first step would be for other parties to endorse our call for a further acceleration of capital expenditure," he said. (BBC News -- UK)
Wondering what a gaming company is up to by entering telco sector? Sep 18, 2009
Surin is excited about the prospects the telecoms sector holds despite the huge capital expenditure needed and the long gestation periods. In fact, he has been involved in the sector via his effective 17% stake in Thailands Shin Corp.. (The Star Online, Malaysia -- Business)
GRF Board and Finance Committee review options on 2010 budget Sep 17, 2009
The newspaper serving the senior adult community of Rossmoor. For more information, go to the Web site at. (Walnut Creek Rossmoor News, CA)
Pipavav Shipyard's IPO price band appears high Sep 14, 2009
2 crore from the IPO proceeds to fund the balance capital expenditure. In addition, Pipavav needs working capital of Rs 429 crore and plans to utilise Rs 244 crore from the IPO proceeds to meet this requirement. (India Times)
Sasol Limited Financial Results for the Year Ended 30 June 2009 Sep 14, 2009
"Our strong cash position was enhanced by the cash conservation approach instituted last October at the onset of the global economic crisis. We have reprioritised capital expenditure for the next two years to about R15 billion per annum. We continue to maintain a flexible approach to our capital expenditure programme, ensuring that our pipeline of growth projects is not affected, and our investment in growth continues unabated. Signs of economic recovery are visible with improved market... (PR Newswire)
Sigma posts 5% first-half profit growth Sep 14, 2009
Sigma remains on track to deliver a $100 million reduction in capital expenditure for the full year, it said. The group has completed the institutional component of a $297 million capital raising launched last week. (Sydney Morning Herald -- Business)
South Korea showsrecovery skills Sep 11, 2009
To be sure, the continuing standoff of the international community with North Korea weighs upon political risk on the peninsula, but it is unused capacity and the contingency of the recovery rather than political risk that keeps firms from laying out capital expenditure for new investments. Bloomberg News reports that Fitch Ratings, impressed with how resilient the country's banking system has shows itself, has raised South Korea's credit-rating outlook from "negative" to "stable". (Asia Times Online)
Harry Winston Diamond Corporation Announces Second Quarter Fiscal 2010 Results Sep 11, 2009
Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding plans, timelines and targets for construction, mining, development, production and exploration activities at the Diavik Diamond Mine, future mining and processing at the Diavik Diamond Mine, projected capital expenditure requirements and the funding thereof, liquidity and working capital requirements and sources, estimated reserves and... (PR Newswire)
Special Town Meeting set for Oct. 19 Sep 10, 2009
Awarded the bid for the 4-wheel drive front end loader waste handling arrangement to Milton-CAT, Southworth-Milton, Inc. $151,000 in capital expenditure was appropriated over two years for this purchase. Accepted the resignation of Building Inspector Walter Tortorici. (Medfield Press, MA)
Slump threatens to shrink state capital expenditure Sep 9, 2009
Now it seems that capital expenditure may not deliver as much support as expected. Nedbank's latest capital expenditure project listing, which was released this week, shows that fixed investment plans in South Africa fell further during the first half of this year, with only 29 new projects announced, down by 64 percent compared with the same period last year ... Eskom has already said that R30bn of its R343bn capital expenditure over the next five years would be put on hold. (Business Report, South Africa)
PetroChina's Parent CNPC Receives $30 Billion Loan for Overseas Expansion Sep 9, 2009
Todays loan is equivalent to PetroChinas 2009 capital expenditure budget of 200 billion yuan, said Kwan at Mirae. While the statement didnt give details on the discounted rate, Chinese banks benchmark interest rate for yuan-denominated loans over five-years is about 5. (Bloomberg -- Asia)
500k waiting for houses Sep 8, 2009
" Most executive director positions in the municipality had been filled. Lekgoro said: "Their (Ekurhuleni municipality) capital expenditure has shot from 36 percent to 90 percent and their ability to collect revenue is 85 percent. Their cash flow situation remains sound. (iAfrica.com)
Banks' Lending Growth Slows for Eighth Month as Companies Reduce Spending Sep 8, 2009
Companies demand for operating and capital expenditure funding remains weak, , associate director-general at the Bank of Japans bank surveillance department, said at a briefing in Tokyo. Firms are holding onto cash they obtained through the spring in the form of deposits. (Bloomberg -- Japan)
Northland Moves to Feasibility Study after Positive PEA on Kaunisvaara Iron Ore Concentrate Project Sep 7, 2009
Turner & Townsend: It is our opinion based on the information provided to us that the PEA Capital Expenditure estimate in respect of the Tapuli, Sahavaara and Pellivuoma projects has where visible to us been constructed in line with the general guidance provided by the Institute of Cost Engineers in respect of level 4 design concept. We believe that level 4 design concept to be comparable to the PEA requirement and that the estimate conforms, as far as it is possible to ascertain, to the... (CCNMatthews Press Releases)
Aurcana Corporation Reports Positive Second Quarter Results Sep 3, 2009
- An initial estimated capital expenditure of under $40 million. - Silver production of 3. (CCNMatthews Press Releases)
Upbeat Harvey heralds recovery Aug 29, 2009
HARVEY Norman boss Gerry Harvey will consider ramping up capital expenditure at his Australian stores, including the opening of new outlets previously on hold due to the global economic downturn, as consumer confidence returns to deliver a better outlook for retailers. Shares in Harvey Norman rallied more than 17 per cent when the company posted a 40 per cent drop in annual profit that was ahead of analyst expectations and coupled with positive management commentary about a rebound in earnings... (Sydney Morning Herald -- Business)
RBI meets asset reserves target Aug 29, 2009
It also maintains an asset development reserve to meet internal capital expenditure and make investments in its subsidiaries and associate institutions ... At the same time, RBI has transferred Rs 1,309 crore to its asset development reserve a fund used to meet internal capital expenditure to make investments in RBIs subsidiary and associate institutions. (India Times)
Sime Darby to triple capital expenditure to RM7bil Aug 28, 2009
PETALING JAYA: Sime Darby Bhd, which reported a better-than-expected profit for the financial year ended June 30, 2009 (FY09), plans to more than triple its capital expenditure (capex) to RM7bil in the current financial year on aggressive business expansion, especially for its plantation operations. We will be aggressive as we cant just stand still. (The Star Online, Malaysia -- Business)
Epic Data Announces Results for the Third Quarter Aug 28, 2009
Epic Data president & CEO, Robert Nygren, commented on the quarter: "We continue to see our customers in North America and Europe delay capital expenditure programs in light of the current economic conditions, and as a result, we experienced lower revenue for the quarter ended June 30, 2009. We continue to focus on sales and marketing initiatives and our product development both of which we believe will deliver long term success for our company once the economy improves.". During the quarter,... (CCNMatthews Press Releases)
Victorian boom leads recovery Aug 28, 2009
Private capital expenditure in Victoria is now at its highest on record, even after adjusting for inflation. The figures will feed into next week's national accounts for the June quarter, with economists upgrading their growth predictions. (Sydney Morning Herald -- Business)
Asian stocks slip on investor caution Aug 27, 2009
New capital expenditure in Australia rose 3. 3 per cent in the second quarter from the previous three months, outstripping forecasts and suggesting the economy is growing faster than expected. (FT.com -- Markets)
PPB Group backs Wilmars China listing plan Aug 27, 2009
On another note, Tan said PPB Group spent about RM77mil of its total capital expenditure (capex) of RM293mil to set up new flour mills and feed mill warehouses, new cinemas as well as upgrade its sugar refineries in the first half of the year. Some RM27. (The Star Online, Malaysia -- Business)
Strong investment data stokes rate rise fears Aug 27, 2009
Dr Emerson attributed Australia's relatively strong economic performance throughout the global financial crisis to the government's economic stimulus packages and the "great attitude'' of local businesses. Today's data from the Australian Bureau of Statistics (ABS) not only showed unexpected strength in actual business capital spending, but also a significant upgrade to investment intentions for the current financial year. Capital expenditure grew by a seasonally adjusted 3.3 per cent in the... (Sydney Morning Herald -- Business)
Toll returns to profit, looks to00004000 acquisitions Aug 27, 2009
"Trading conditions in the short term are expected to remain generally flat with some improvement evident across Australia and Asia,'' he said. Toll said it generated $463 million in operating cashflow after capital expenditure. The Australian and New Zealand business, which accounts for three quarters of sales, increased revenue by 4.7 per cent to $4.86 billion and earnings before interest and tax (EBIT) by 4.8 per cent to $372 million. Mr Little said volumes declined in some parts of the... (Sydney Morning Herald -- Business)
Essilor : First Half 2009 Results Aug 27, 2009
Capital expenditure net of divestments totaled EUR72 million or 4 ... Cash Flow Statement EUR millions Net cash from operations 273 Capital expenditure net of the proceeds from asset sales 72 Proceeds from employee share Change in WCR and issue 16 provisions 102 Change in net debt 99 Dividends 138 Financial investments net of disposals 61 Effect of changes in exchange rates and in the scope of consolidation 15 ... Net cash flow (cash flow less capital expenditure) rose by 12. (PR Newswire)
Second Wave Petroleum Drilling Success Extends Judy Creek Oil Resource Play; 50 Locations Identified for Development Aug 26, 2009
Based on the depth drilled of 2,903 meters and the available guidance on this drilling royalty credit program, the Company expects that its capital expenditure of $1. 1 million for this latest well would qualify it for a $0. (CCNMatthews Press Releases)
Minister outlines government payments Aug 26, 2009
Dr Duffuor said foreign-financed capital expenditure amounted to GH654. 2 million, 7. (Ghana Web, Ghana)
Goodman Fielder posts profit, revenue rise Aug 26, 2009
"The company expects to see efficiency gains resulting from its capital expenditure program and plant rationalisations begin to flow through, underpinned by its strengthened focus on branded everyday foods. "The company will continue to focus on maximising operating cash flow to ensure that it remains in a position to maintain its high dividend payout ratio and to reinvest in the business. " Goodman Fielder said its Home Ingredients division posted a 25 per cent increase in sales revenue, driven... (Sydney Morning Herald -- Business)
Kulula in flap over Acsa Aug 26, 2009
This follows the release of Acsa's financial results last week in which the airport operator revealed a massive shortfall in funding to cover its R17-billion capital expenditure commitments ... "Following the massive capital expenditure, Acsa is in desperate need of a capital injection from its shareholders. During these tough economic times, travellers do not deserve to be hit by yet another massive increase in airport charges," said Venter. (iAfrica.com)
Sinopec Corp. Announces 2009 Interim Results Aug 24, 2009
In the first half of 2009, capital expenditure for exploration and production segment was RMB19 ... The capital expenditure for refining segment was RMB5 ... Capital expenditure in marketing and distribution segment was RMB2. (PR Newswire)
TM gains from unrealised forex Aug 22, 2009
4bil for capital expenditure this year. So far, RM520mil was spent under its business-as-usual programme, while RM428mil was utilised to set up its high-speed broadband (HSBB) infrastructure. (The Star Online, Malaysia -- Business)
Ingenious way to provide private equity funding Aug 22, 2009
The capital expenditure has already been made since it started in 2007, says Du. As for Ingenious, since it first started out in 2004, it has helped numerous entrepreneurs and mid-sized companies with advisory activities. (The Star Online, Malaysia -- Business)
› Parastatals on life support Aug 22, 2009
When power utility Eskom releases its results for the year to March next Thursday, the extent to which a combination of rising energy costs, a fall in electricity sales because of the recession, and the multibillion-rand capital expenditure programme has taken its toll will be laid bare. According to Eskom, funding the capital expenditure programme will test the utility's financial sustainability ... The results will also shed light on the rising costs of the capital expenditure programme, which... (iAfrica.com)
Briefing: BT's pension problem Aug 21, 2009
Including these and capital expenditure, Global lost at least 800m last financial year ... It would be hard to shut because a big chunk of its customers and capital expenditure are in Britain, making it tricky to disentangle ... About a third of the planned savings are from cuts to capital expenditure, which has reached historically low levels. (The Economist)
Rio Tinto profits slump 65% Aug 20, 2009
"We are on track to meet the commitments we made December last year to reduce operating expenditure and the capital expenditure estimate has been revised in line with market conditions.". Rio Tinto announced earlier this week that it was selling parts of its Alcan business to Australian packaging firm Amcor for 2. (Sydney Morning Herald -- World)
Wesfarmers shares drop as profit falls short Aug 20, 2009
While economic conditions remain uncertain, the board's decision is based on the company's current and projected cash position, having regard to capital expenditure requirements, retained earnings, franking credits, debt levels and business and economic conditions generally,'' the company said. Wesfarmers will seek to deliver stable and growing dividends in the future. (Sydney Morning Herald -- Business)
Associated Materials and AMH Holdings Report Second Quarter Results Aug 19, 2009
The Company has included adjusted EBITDA because it is a key financial measure used by management to (i) assess the Company's ability to service its debt and / or incur debt and meet the Company's capital expenditure requirements; (ii) internally measure the Company's operating performance; and (iii) determine the Company's incentive compensation programs ... The following factors, and others which are discussed in the Company's and AMH's filings with the Securities and Exchange Commission, are... (PR Newswire)
More giants to tap dollar bonds? Aug 18, 2009
The money raised for Petronas was to fund its capital expenditure and operations. Petronas sold US$4. (The Star Online, Malaysia -- Business)
South Texas Oil Company Announces Second Quarter 2009 Financial and Operating Results Aug 15, 2009
During the second quarter of 2009, South Texas Oil's total capital expenditure investment for development and exploration of its leasehold was approximately $333,000 ... South Texas Oil's total capital expenditure investment for development and exploration of its leasehold during the first half of 2009 was approximately $1 ... If South Texas Oil is not successful in obtaining sufficient funding or completing an alternative transaction or transactions on a timely basis on terms acceptable to the... (PR Newswire)
Fuwei Films Announces Unaudited Financial Results for Second Quarter of 2009 Aug 15, 2009
Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain... (Primezone Releases)
Cyalume Technologies Holdings Announces Results for the Second Quarter of 2009 Aug 15, 2009
These risks and uncertainties include, but are not limited to: the effect of regional and global economic and industrial market conditions including our expectations concerning their impact on the markets we serve; the effect of conditions in the financial and credit markets and their impact on the Company and our customers and suppliers; the impact of the Company's cost reduction initiatives; the Company's ability to execute its business plan to meet its sales, operating income, cash flow and... (Primezone Releases)
Tethys Petroleum Limited: Second Quarter 2009 Financial Results Aug 15, 2009
- Capital expenditure of approximately US$4. 8 million was incurred in Q2, 2009 compared to US$9. (CCNMatthews Press Releases)
Tax code, a paradigm shift Aug 14, 2009
The catch however, is that instead of offering profit linked incentives, only the revenue and capital expenditure amortisation shall be allowed and thereafter, profits would be taxed. 1. (India Times)
