Thursday, May 3, 2012

Fielders & BlueScope News.

Fielders & BlueScope are in the News Again!

Fielders Queenslands Loss Leader??

What is happening in Queensland! It's seems like Craig Thompson and Peter Slipper have both Credit Cards or Cabcharges at Fielders Northgate - with the reports on the grapevine of nearly $1 million stock loss!!! Maybe the CyberPolice Squad should check the local Auction Houses??? The Auctions have been quite busy in steel roofing, purlins, framing and flashings! This amount is getting close to nearly 5% of the Queensland turnover at current sales! Not a good look! Maybe Hills should send up their forensic accountants! Just Google (add relevant steel product) Auctions Brisbane! The QLD branch's need sorting and quick! (Info sourced - QLD Roofer SMS) - Thanks!

One Auction Yard in Brisbane! Lots of stock! A few houses!

BlueScope - Sell, Sell, Sell????

Well aren't BlueScope on a mission to sell assets in their business mix! Seems it's either Australia or the USA - but Asia is getting all the money (in partnerships or expansion) - why!
Here's the latest extract for Bluescope some hours ago:

BlueScope sells its Metl-Span Insulated Metal Panels Business

- 03 May 2012
BlueScope announced the sale of Metl-Span, its North American steel insulated panels business, to NCI Group Inc, a NYSE listed company majority owned by private equity firm Clayton, Dubilier & Rice LLC for USDS 145 million.

The estimated net proceeds of the sale, USD 117 million after purchase price adjustments, tax and fees, is expected to be received during the fourth quarter of FY2012 subject to receipt of necessary regulatory approvals and finalisation of debt financing by NCI. The estimated net profit after tax on the sale is USD 9 million, before recognition of unrealised foreign exchange losses of AUD 20 million, and will be included in the FY2012 accounts, based on the expectation the transaction is completed before FY2012 year end.

On announcing the Metl-Span transaction, BlueScope Steel's Managing Director and CEO, Mr Mr Paul O'Malley said, "The sale price realises the value created in this business and generates a good financial return for BlueScope Steel. As outlined in February 2012 at the Company's half year results, we have been actively seeking potential asset sales that could realise around $100-150 million. The divestment of Metl-Span achieves this target and the net proceeds will be used to pay down debt. Under the terms of the arrangement, BlueScope's North American subsidiary, Steelscape, will continue to supply product to Metl-Span and Metl-Span will continue to supply product to BlueScope Buildings North America.

He added "I personally commend the employees and management at Metl-Span for building and running a successful business over many years. Their work has underpinned the significant value of this asset.”

Vinson & Elkins LLP acted as legal advisor and J.P. Morgan Securities LLC acted as financial advisor to BlueScope Steel.

The biggest highlight is that they are willing to take a AUD$20 million loss on the exchange rate - highlighted above.

Investigate Metl-Span here! Basically a sandwich or Insulated Panel Manufacturer!

It's not going to get better with this sort of stuff going on!

Also new profile coming out in August 2012 from NSW!!

28 comments:

  1. Million dollar stock loss? Maybe 'Mr Water' Peter Lavin will buy his old Brisbane Sheetmetal business back from Hills.
    Haven't heard any more rumours about them getting close to selling the Fielders and Orrcon businesses, anyone heard anything ?

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    1. Maybe Hills will give it back to him - FOC! I can't see a sale for Fielders anytime soon!

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  2. Good to see a win for Bluescope with their business sale to help pay down debt and get their balance sheet stronger.
    I think they'll come oput of the GFC in good shape (if it ever finishes !)
    Also the 0.5% interest rate cut should see housing kick a bit, but governments need to give housing a big stimulus to get some real activity going

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    1. KC you've hit the nail on the head... bring back the first home buyers grant and keep the interest rates down and the work will come back...
      I have been hearing rumours about who wants to buy Fielders and Orrcon but i doubt we will hear anything until the EOFY - if at all?
      Bluescope are making ground but Lysaght are dragging the party down...

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    2. True KC!
      But a different way of looking at this, and will definately bring in the cash! The shareholders are only interested in profit currently as they have lost so much already - will be a while to get their confidence back - at least 4 out of 4 quarters of good profit etc! The TATA BlueScope marriage in India is going great and will be confirmed at end of FY.

      Why is the construction (including housing) industry being ignored by this government?

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  3. Stramit don't seem to be handling this latest downturn too well according to FBU who haven't got them rated highly in last presentation to shareholders! But on the ground they seem to be holding their own? EBIT is everything to shareholders I suppose!

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  4. Stock loss is give or take a couple hundred thou from what im told, if i were hills/fielders i wouldnt pursue it. it will cost more than you've lost....forenesic accountant, tax man on profits etc. I too dont see a sale for fielders, plenty of people entertain the idea but dont have the capital to back it up.

    Locally in SA, things will stay slow for awhile yet but at least you can see the light at the end of the tunnel now. I dont think first home owner grants do anything, statistically there hasnt been a spike in home sales because of the grant. I think we need to lower land taxes and make owning a home more affordable IE. mortgage on house and lease the land of state governments.

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    1. A stock loss of 100K + sounds more reasonable than a mil - with computers tracking all manufacturing and unless they were stealing from customers; flags would have gone up especially if there were a million dollars worth of reworks!
      Things are looking better Tinman and maybe your right a first home buyers grant was exploited - the real issue is getting the banks to lend money. This is the biggest holdup on the building sector - Swann needs to loosen his purse strings, maybe a 5% government 5 year interest free loan to help with a deposit?

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    2. heard it was close to $800 thou
      northgate in panic

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    3. Things have changed there.since Peter Cam left......

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  5. Queensland home grants did nothing, maybe a lot of state owned rental properties would be the go, along with tinman's tax breaks for investors. Once building picks up, so does the rest of the urban economy. With a chronic undersupply of rental dwellings, now is the time for tough and bold decisions Julia !

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  6. none of this will happen until we go back to the polls and get rid of labour

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  7. Slipper and Thomson have to get done before a poll, everyone pray ! I heard their missing stock was in shed and carport components and it was $800k.

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  8. Gee 800k is hard to swallow - surely criminal proceedings and an investigation would have to happen? Why isn't this in the news shareholders should know about this!?
    Slipper, Thomson and Gillard should all be thrown out.. Turncoats cant be trusted..

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  9. More likely than theft it's overestimated profit margins and therefore assumed high stock levels. There would be millions of shed and carport components and they are expensive little buggers

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  10. stolen shed ,chinese beam rollformer wastage ,general wrong orders all big losses in stock added up
    still abig worry for head office

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  11. Maybe Bluescope will use some of the Metl-Span $130 million to buy Fielders and give their loyal staff some security & direction again.

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    1. Trev - I believe Bluescope will sell off Lysaght - why continue to bleed money like they have when they can position themselves as a high quality importer of metal products? Fielders worth is over estimated as Revolution have targeted all the sections of the company and customers that were profitable (atleast in SA and WA) to buy it (handy when you have all the information at hand) - they would need a big price incentive and from what I hear Hills are holding out for a good price - albeit at the cost of market share. But I must stress talk is cheap when the changes to the industry come (and they will) I expect to be surprised who ends up on top and holding all the aces. Everyone is for sale if the price is right.

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    2. BlueScope will have to break up Distribution and Lysaght as they are in the same business unit - Yes - Lysaght will be separated shortly and put on the market! Then they can concentrate on O/S import of COIL "made by BlueScope" from Asia.

      Fielders won't sell until after 2012 is over - then it will be a bargin to one of the other rollformers (most likely FBU) - depending on the price!

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    3. RBA says - No way Bluescope will ever sell Lysaght, they or Stramit will buy Fielders soon, no-one is making money and there are hundreds of millions invested, their shareholders can't wait any longer to get returns, neither can the Hills shareholders.
      Don't be surprised to see some mergers since noone wants to part with cash and banks aren't lending.

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    4. Fielders BRIS - Is fielders worth it - account turnover, machinery leased sites , doesn't look good? the offer of merger will be very little -lot of people unemployed if this happens- market is really slow at the momnent. lysaght is still a possibility with bluescope cutting cost as they are loosing a lot of money with plant staff and management

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  12. hills cant afford to sell fielders, the loss of turnover will see them drop off the scale and just become a small business. Fielders ceiling is higher than most in the industry and in hills portfolio. hills are more worried about orrconn, korvest and team poly.

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    1. Tinman after the budget this week I think you are right - the industry has had massive change since the failed sale of Fielders to Fletcher Building. Hills would be better off rationalizing their overheads and focusing on what they do well - which is exactly what I believe they are doing at the moment. I'm sure when the economy picks up this may be reviewed. I have no doubt your correct and that they would drop off the ASX without the Fielders portfolio as it is a cash cow even with reduced margins of late. There has been a arm wrestle for market dominance in SA and Fielders despite the competitions best efforts are still on top - Revolution have made an impact, as have Stratco and Stramit. Lysaght are too volatile and continue to bastardize the market rather than understand it.
      These are my thoughts but as I have said before takeovers will happen but when is the million dollar question.

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    2. I agree with RBA, mergers will be the way the industry is rationalised, no cash changes hands and the Board's fragile egos are protected

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  13. Hills has to dispose Fielders from the balance sheet. It's a dog but who would buy it? Lysaght and Stramit aren't performing much better so can't see Fletchers or Bluescope investing more capital in roll forming. Bluescope is not making money in Australia and their Cash cow (Colorbond) is under extreme pressure from imports. Sad to see such an iconic brand be destroyed by Bluescope's greed and arrogance.

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    1. You may be correct - 3 years plus of negative EBIT - is not good! It is doesn't matter how much turnover Fielers generate - it looses money! They have too much invested to shut it down - I can see problems with this at end of FY! Lysaght is not far behind in this regard - huge loss of money for BlueScope!

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