BlueScope shares up on improved earnings

Australia's largest independent steelmaker, BlueScope Steel share gained 6.3% after the company hinted that profit in the current half is likely to rise.

The company reported profit for the six months ended Dec. 31, excluding one-time items, fell 21% to $305 million ahead of $290 million estimates. Net income fell to $116 million or 15.6 cents per share from $388 million, or 54.6 cents, a year ago.

BlueScope Managing Director Paul O'Malley was confident that higher steel prices driven by continued strength in global demand were expected to improve earnings in this half.

Rio seek higher coal prices

Local news media reported that Rio Tinto Ltd was seeking to raise its 2008 contract coal price for Japanese utilities by up to 143%.

Bloomberg reported that marketing executives from Rio Tinto's Australian coal unit had offered their Japanese customers, including Chubu Electric Power Co, supplies for about $135 a ton compared to $55.65 a ton a year ago, during a meeting in Tokyo last week.

Seven Network routing for the axing of directors

The largest shareholder of West Australian Newspapers Holdings Ltd, Seven Network Ltd has indicated that they want five board members from the publisher to be removed because of poor performance.

Seven's chairman, Kerry Stokes made a formal request at a shareholder meeting to oust the non-executive directors after they were ``appalled'' by West Australian News' performance, which resulted in a cut in the company's dividend. The company said it would pay a 21cents dividend for the first half, compared with 30 cents a year earlier.

Executive Peter Gammell, was nominated by Stokes to stand for election to the West Australian News board, but emphasised that Seven wasn't seeking control of the newspaper group.

Seven shares added 2.7% and West Australian News stock increased 1.1%

Challenger posts 26% drop in profits

Challenger Financial Services Group today announced that it had posted a 26% drop in first-half profit as interest costs increased.

Its net income totaled $95.7 million in the six months ended December 31, down from $129.9 million a year earlier. Assets under management rose 22% to $47.3 billion and fee income climbed 25% after the $163 million acquisition of Choice Financial Services in September.

Challenger shares rose 2.7% after trimming its loss during the past year to 43%.

Allco share falls on debt repayment concerns

Allco Finance Group Ltd fell 63% today after the Australian asset manager said it be might forced by lenders to repay $1.15 billion of debt in the next three months.

Chief executive David Clarke said in a statement that Allco had $250 million due May 1st and additional $900 million could be called on to repay within 90 days. The company had $591 million in cash on Dec. 31.

The shares closed 92% below their record $13.23 a year ago.