NZ stocks: CHH due to explain dismal profit tumble

By ELLEN READ

There will be a change of theme this week as the Carter Holt Harvey annual meeting shows signs of grabbing the limelight from the ongoing battle for control of Montana Group.

Carter Holt reported a dismal first-quarter profit last week, a $34 million net loss, and on Wednesday the company must front up to its shareholders with an explanation.



With the full results season looming, Restaurant Brands' first-half result will be released tomorrow.

Although the fast-food retailer's sales rose nearly 15 per cent in the three months to June, the company has said its half-year profit will be less than the previous first-half net profit of $7.4 million.



On Thursday, Mainfreight shareholders gathering for their annual meeting will want to know why the company did so badly in Australia.

Last month, Mainfreight reported a March-year profit of $2.4 million, 73 per cent down on the previous year's $8.9 million profit.

Of course, the week wouldn't be complete without some twist in the Montana storyline. This week's instalment is likely to be the release of the full details of Allied Domecq's $4.80 100 per cent takeover offer.

With parties treading carefully to avoid attracting the ire of the many watching lawyers, panels and committees, expect a careful document.

Speculation was rife in the market last week about Merrill Lynch's purchase of almost $1.5 billion in New Zealand dollars. It could be currency speculation, but the most popular rumours concerned possible takeover bids for Fletcher Forests or Fletcher Building.

The NZSE-40 capital index ended last week up just 0.1 per cent at 2047.38.