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Nicholas Grove is a Morningstar journalist.

ATTN: This will be the last daily analysts' briefing until after the current earnings reporting season has concluded. Regular publication is currently scheduled to restart in early March. 

Gunns announces $280m capital raising

Tasmanian forestry company Gunns Limited (GNS) on Wednesday said it has agreed to terms with Richard Chandler Capital Corporation (RCC) regarding a proposed capital raising, involving a rights issue and a placement of Gunns shares to RCC. The value of RCC.s investment will be $150 million, Gunns said, and if the rights issue is wholly subscribed for, it will raise approximately $130 million. The potential total raising is therefore approximately $280 million, Gunns said. A Morningstar analyst said the proposal is massively dilutive to existing shareholders, with shares on issue increasing from 848 million to 2576 million before the exercise of warrants. "But, if successful, the proposal probably ensures the future of the company and the Bell Bay Pulp Mill," he said.

Ansell records 9pc rise in 1H profit

Rubber gloves and condom manufacturer Ansell (ANN) on Wednesday announced a 9 per cent rise in first-half profit to US$66.6 million. Earnings per share (EPS) in Ansell's operating currency, the US dollar, rose 10 per cent on same period in the prior year, driven by higher sales and improved gross margins. Ansell said the solid result enabled it to declare an unfranked interim dividend of 15 Australian cents a share, up 7 per cent. The company also reiterated full-year EPS guidance of 97 to 103 US cents, up 6 to 12 per cent on the previous year. Ansell said its outlook for fiscal 2012 is "decidedly mixed," with a recovering US and strong Asia Pacific expected to offset a weaker Europe and resultant lower euro.

Rio to invest further US$3.4bn in Pilbara expansion

Rio Tinto (RIO) on Wednesday said a further US$3.4 billion will be spent on expanding its Pilbara iron ore operations in Western Australia. Rio said its share of the investment will be US$2.9 billion. This will comprise US$2.2 billion to extend the life of the Nammuldi iron ore mine, and US$700 million for Cape Lambert port and rail early works needed for a proposed capacity expansion to 353 million tonnes a year (Mt/a). This expansion is in the final feasibility study phase, with a final investment decision expected later this year, Rio said. Rio's Pilbara operations have a current operating capacity of 225 Mt/a.

Alcoa to review future of Victorian smelter

Alcoa on Wednesday said it has commenced a review of the future viability of its Point Henry aluminium smelter in Victoria, in the face of what it called "continuing difficult global economic conditions for the smelting industry". Alcoa has a 60 per cent stake in the Alcoa World Alumina and Chemicals (AWAC) venture, the world's largest alumina producer, alongside Alumina's (AWC) 40 per cent stake. Alcoa said current global economic conditions are severely impacting the aluminium industry, with various companies, including Alcoa, announcing the review, closure or curtailment of smelters both in Australia and overseas.

Reckon's FY profit in line with forecasts

Accounting software provider Reckon Limited (RKN) has reported a 6 per cent rise full-year profit before one-off costs to $18.3 million. The result was achieved on the back of a 1 per cent year-on-year rise in revenue to $91.3 million. Reckon also declared a final dividend of 4.5 cents a share, 90 per cent franked. This represents an increase of 1 cent per share on the interim dividend of 3.5 cents per share declared on 9 August 2011, Reckon said. A Morningstar analyst said the result was largely driven by tighter cost controls, and was in line with expectations. "Our long-term view on Reckon is unchanged," he said.