Earnings reporting season is well underway in Australia, where the typical financial year runs from July 1 through June 30. So for most companies, including our AE Portfolio Conservative and Aggressive Holdings, we’re seeing fiscal 2014 results.

Over the past month we’ve also had separate takeover attempts of two Conservative Holdings, Australand Property Group (ASX: ALZ, OTC: AUAOF) and Envestra Ltd (ASX: ENV, OTC: EVSRF) progress to the end game.

For Australand, whose acquisition by Singapore-based Frasers Centrepoint Ltd (Singapore: FCL) is on track to close on Aug. 21, we’re going to book a US dollar total return of approximately 81 percent.

We added the A-REIT to the Portfolio in March 2012, and since then it’s outperformed the S&P/Australian Securities Exchange 200 Index’ 26.5 percent US dollar total return, the S&P/ASX A-REIT Index’ 39.6 percent and the S&P 500 Index’ 46.6 percent gain.

Envestra, an original member of the AE Portfolio, is set to be acquired by a Cheung Kong Group consortium on Aug. 21.

The natural gas transmission and distribution company checks out of the Portfolio with a total return in US dollar terms of 137.4 percent versus 55.9 percent for the S&P/ASX 200, 66.5 percent for the S&P/ASX 200 Utilities Index and 79 percent for the S&P 500 for the Sept. 26, 2011, through Aug. 15, 2014, holding period.

As for Portfolio recommendations that reported financial and operating results since the July 2014 issue was published, highlights include four dividend increases on top of the boost that we reported last month for Conservative Holding Transurban Group Ltd (ASX: TCL, OTC: TRAUF).

Conservative Holdings CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY) and Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY) and Aggressive Holdings JB Hi-Fi Ltd (ASX: JBH, OTC: None) and Rio Tinto Ltd (ASX: RIO, NYSE: RIO) have joined the ranks of the dividend growers for this reporting period.

Numbers for the 10 companies whose reports we break down below have been largely positive, though we have made note of some early fiscal 2015 weakness for JB Hi-Fi and casino operator Crown Resorts Ltd (ASX: CWN, OTC: CWLDF, ADR: CWLDY).

We will of course be monitoring these Aggressive Holdings for signs of persistent weakness.

APA Wins for Losing Envestra

On Aug. 7, 2014, APA Group (ASX: APA, OTC: APAJF) announced that it would sell its 33 percent stake in Envestra Ltd (ASX: ENV, OTC: EVSRF) into the AUD1.32 per share bid from a consortium including Cheung Kong Infrastructure Holdings Ltd (Hong Kong: 1038, OTC: CKISF, ADR: CKISY), Cheung Kong Holdings Ltd (Hong Kong: 0001, OTC: CHEUF, ADR: CHEUY) and Power Assets Holdings Ltd (Hong Kong: 0006, OTC: HGKGF, ADR: HGKGY).

APA will use the approximately AUD784 million in pre-tax profit from the sale to fund expansion over the next 12 to 18 months.

APA has been averaging AUD300 million AUD400 million of capital spending a year, meaning the sale would cover a couple of years of investment. And the proceeds could fund other acquisition opportunities.

“The cash offer put forward by the consortium well exceeded our valuation of the Envestra business, even at full ownership,” noted APA Managing Director Mick McCormack. “Selling out of this investment and redeploying the proceeds in other opportunities will provide better longer-term value for APA security holders.”

APA’s attention likely will turn to liquefied natural gas (LNG) infrastructure assets.

Both BG Group Plc’s (London: BG/, OTC: BRGXF, ADR: BRGYY) Queensland Curtis LNG project and the ­Australia-Pacific LNG project being built by Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY) and ConocoPhillips (NYSE: COP) have pipelines being built to take onshore coal-seam gas to LNG plants at Gladstone.

Operators of both projects have said these assets will at some point be put up for bids.

APA, which will report fiscal 2014 financial and operating results on Aug. 20, is a buy up to USD7.

APA’s shares took Cheung Kong’s stake past the 50 percent minimum required for the deal to go through.

The purchase gives Cheung Kong 23,000 kilometers (14,000 miles) of Envestra’s pipelines supplying gas to customers mostly in the states of Victoria and South Australia.

Envestra’s independent directors in May recommended Cheung Kong’s cash bid for the company over APA’s stock-and-cash proposal that valued the target at AUD1.31 per share.

Envestra shareholders should have received a final dividend of AUD0.0 35 per share in respect of the 2014 financial year on top of Cheung Kong’s offer price of AUD1.32 per share.

Envestra reported 9 percent growth in fiscal 2014 revenue to AUD554.4 million, as net profit after tax (NPAT) grew by 42 percent to AUD153 million.

Capital expenditure was up 17 percent to AUD253.3 million, while net finance costs declined by 18 percent to AUD121.1 million.

Operating costs net of costs associated with the merger/takeover process were down by AUD1 million. Envestra added 21,000 customers during the year.

If you haven’t already done so, tender your Envestra shares into the Cheung Kong offer.

Australand Action

Australand Property Group Ltd (ASX: ALZ, OTC: AUAOF) reported 2014 first-half operating profit after tax of AUD80.8 million, a 30 percent increase over the prior corresponding period.

Statutory net profit after tax (NPAT) was up 49 percent to AUD131.5 million, or AUD0.14 per security. Net tangible asset value per security as of June 30, 2014, was AUD3.68, up from AUD3.57 a year ago.

Australand declared a first-half distribution of AUD0.1275 per security, for a payout ratio of 91.1 percent.

The big news for Australand and its shareholders is that the AUD2.6 billion takeover by Singapore-based Frasers Centrepoint Ltd (Singapore: FCL) at AUD4.48 per share is virtually complete.

Frasers’ stake in Australand exceeded 50 percent before the Aug. 7, 2014, deadline, as securityholders accepted the offer, which is now unconditional. The deadline for Australand securityholders to accept has been extended to Thursday, Aug. 21, 2014.

Australand securityholders who validly accept the offer on or before Aug. 21 will receive the offer price of AUD4.48 per Australand security from Frasers.

Now that the offer has become unconditional, Australand securityholders as of Aug. 18, 2014, are entitled to an “allowed distribution” of AUD0.0263 per security. That’s a final dividend of AUD0.1275 pro-rated for the period from July 1, 2014, through Aug. 7, 2014, whether or not they have accepted the offer. This distribution will be paid on Aug. 27, 2014.

Australand’s industrial and office investment portfolio continued to grow its earnings contribution, driven by comparable rental growth and additional income from internal developments completed in 2013.

Residential earnings were up on favorable market conditions and the performance of key projects during the half. Managed noted that contracts in hand are in “a very healthy position,” with a significant amount of earnings in the pipeline for the second half of the year.

Investment Property earnings before interest and taxation (EBIT) were AUD97.8 million, with comparable rental growth of 3.2 percent. Occupancy as of June 30 was 94.3 percent, and the weighted average lease expiry was 5.3 years.

Development EBIT was up 21 percent compared to the first half of 2013, with the Residential business posting EBIT of AUD30.7 million and the Commercial & Industrial unit contributing AUD8.2 million.

Residential sales activity remains strong, and the division held 2,170 contracts on hand, securing earnings for the second half of the year.  

Commercial & Industrial delivered lower earnings due to weaker occupier demand, though it continues to maintain strong market share. Management noted that enquiries from logistics service providers and large retailers improved over the course of the half-year, setting up for “higher levels of activity” through Dec. 31, 2014.

If you haven’t already done so, tender your Australand shares and accept the Frasers offer immediately.

We’ll have a like-for-like replacement for Australand in the September 2014 issue of AE, after we’ve had an opportunity to evaluate recent financial and operating numbers for the Australian real estate investment trusts (A-REIT) currently under How They Rate coverage.

Conservative Update

The remaining A-REIT in the AE Portfolio, Conservative Holding GPT Group (ASX: GPT, OTC: GPTGF), reported 2014 first-half earnings per security (EPS) growth of 4.5 percent on the prior corresponding period and adjusted funds from operations (AFFO) growth of 3.3 percent to AUD183.3 million.

Management noted that GPT is on track to deliver EPS growth of at least 3 percent for the full year, noting improved conditions in the retail sector and signs of recovery in both the Sydney and Melbourne office markets.

Statutory net profit after tax (NPAT) was down 6.4 percent to AUD240.6 million. Although the value of GPT’s portfolio increased by AUD30.8 million, this was offset by the impact of asset sales in the second half of 2013 and a negative mark-to-market movement on derivatives.

Management reported a net tangible asset value per security of AUD3.82 as of June 30, 2014.

GPT completed A1.1 billion in acquisitions during the period, but the balance sheet remains among the strongest in the A-REIT space, with overall gearing of 24.8 percent.

A successful USD175 million issue in the US private placement market helped lengthen GPT’s debt maturation profile and further diversify GPT’s debt-funding sources. The cost of debt in the first half was 30 basis points lower compared to 2013.

GPT’s logistics portfolio posted a 16.2 percent increase in income on the strength of several acquisitions and the completion of new developments. The funds management division posted a 9.7 percent return.

The Retail portfolio posted comparable income growth of 2.6 percent versus the prior corresponding period, driven by specialty sales growth of 3 percent. Occupancy as of June 30 was 99.5 percent.

The Office portfolio will benefit from the signing of 105,850 square meters of leases signed or extended during the first half. The weighted average lease expiration extended to 6.3 years as of June 30, up from 5.8 years as of Dec. 31, 2013.

Like-for-like income growth for the unit was negative 3.1 percent, predominantly due to vacancy at the MLC Centre in Sydney. Management has put in place a strategy to reposition the property, at a forecast cost of AUD7.5 million.

Excluding the MLC Centre like-for-like growth would have been 1.5 percent.

GPT Group, which is yielding 5.1 percent, is a buy under USD4 on the Australian Securities Exchange (ASX) using the symbol GPT and on the US over-the-counter (OTC) market using the symbol GPTGF.

CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY), which develops and manufactures vaccines and plasma protein biotherapies for treatment and prevention of a range of human medical conditions, reported a 7.8 percent increase in fiscal 2014 net profit after tax (NPAT) to USD1.31 billion, beating management guidance of 7 percent growth.

The result included a USD64 million payment to settle a lawsuit in the US.

CSL declared a final dividend of USD0.60 per share, up 15.4 percent from the fiscal 2013 final dividend.

Sales for the fiscal year ended June 30, 2014, were up 7.7 percent to USD5.33 billion.

Sales of immunoglobulin products, used to boost a person’s immune system and fight infections, grew 12 percent in constant currency terms, helped by strong demand for Hizentra, a subcutaneous immunoglobulin treatment, in the US and Europe.

Sales of CSL’s specialty blood products rose by 18 percent to USD848 million, as treatments such as Kcentra, used for patients with acute bleeding, received approvals for broader use in the US.

CSL is in the final stages of a AUD950 million share buyback program, as management said it’s considering another AUD950 million effort.

CSL forecast fiscal 2015 NPAT growth of approximately 12 percent in constant currency terms, with earnings before interest and taxation (EBIT) growth of approximately 15 percent. Although management expects trading conditions to remain challenging, CSL is seeing “robust” demand for its plasma therapies.

CSL, which operates in more than 20 countries, began reporting in US dollars as of fiscal 2014 because the bulk of its profits are earned overseas. It continues to expand globally and to grow its market share via acquisitions and an effective research and development pipeline that’s helped it capitalize on difficulties such as product recalls and plant closures faced by major competitors.

Based on the 15.4 percent increase to its final dividend, we’re boosting our buy-under target on the stock.

CSL is now a buy under USD72 on the ASX using the symbol CSL and on the US OTC market using the symbol CMXHF.

CSL also trades on the US OTC market as an American Depositary Receipt (ADR) under the symbol CMXHY. CSL’s ADR, which represents 0.5 of an ordinary, ASX-listed share, is a buy under USD36.

Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY), after holding its dividend policy steady for nine years, announced its second increase in calendar 2014 and also revealed plans for a AUD1 billion share buyback.

The capital management program will still leave plenty of cash and balance-sheet flexibility to fund growth via mergers and acquisitions and to bolster Telstra’s market-leading network.

Telstra will pay a final dividend of AUD0.15 per share, up from AUD0.14 a year ago, after it lifted the fiscal 2014 interim dividend to AUD0.145 from AUD0.14 for the prior corresponding period. All told the fiscal 2014 dividends are up 5.4 percent compared to fiscal 2013.

Telstra’s mobile network already offers four times the 4G geographical coverage area of any other 4G mobile network, providing coverage to 87 per cent of the Australian population.

To help improve speed and capacity for customers on the 4G network Telstra plans to spend AUD1.3 billion for the largest available holding of the 700 megahertz (MHz) and 2500 MHz spectrum. Management also expects to once again invest around AUD1 billion in its mobile network during fiscal 2015.

Total capital expenditure for fiscal 2014 was down slightly to AUD3.7 billion.

Telstra’s mobile subscriber base grew by 937,000, but the rate of increase slowed in the second half of the year, as management had forecast. Telstra now has 16 million subscribers, who helped drive 5.1 percent growth in mobile revenue to AUD9.67 billion.

Revenue for Telstra’s fixed voice business declined by 7.5 percent, but that’s the unit’s best result in five years. Fixed data revenue was up 6.3 percent, helped by the addition of 183,000 subscribers to bring the total to 3 million.

Sales for Network Applications and Services (NAS), which provides “cloud” and other IT services, grew by 27.8 percent to AUD1.9 billion.

Payments for Telstra’s cooperation with Australia’s National Broadband Network (NBN) ramped up, with NBN-related revenue of AUD640 million for fiscal 2014 compared to AUDD399 million for fiscal 2013.

Telstra has signed non-binding preliminary agreements with NBN Co as part of the renegotiation of its AUD11 billion deal to help build the national broadband network. No date had been set for the NBN renegotiation to be completed.

Total income for the period was up 6.1 percent to AUD26.3 billion.

Earnings before interest, taxation, depreciation and amortization (EBITDA) amounted to AUD11.1 billion, a 9.5 percent increase compared to fiscal 2013.

Statutory net profit after tax (NPAT) grew by 14.6 percent to AUD4.3 billion, as earnings per share (EPS) grew 14.3 percent to AUD0.344.

The payout ratio for the full year was 85.7 percent.

We’re boosting our buy-under target for Telstra based on the increased final dividend.

Telstra is now a buy under USD5.50 on the ASX using the symbol TLS and on the US OTC market using the symbol TTRAF.

Telstra also trades on the US OTC market as a Level I, sponsored ADR. Telstra’s ADR is worth five ordinary, ASX-listed shares. Telstra’s ADR is a buy under USD27.50.

Transurban Group (ASX: TCL, OTC: TRAUF) reported fiscal 2014 proportional earnings before interest, taxation, depreciation and amortization (EBITDA) increased by 12.8 percent to AUD934.1 million. Statutory net profit after tax (NPAT) was up 30.8 percent to AUD252.2 million.

Free cash for the full year was AUD571.9 million, up 29 percent compared to the prior corresponding period.

Fiscal 2014 statutory toll revenue was up 13.1 percent to AUD906.5 million. Proportional toll revenue–which management believes is the most accurate reflection of the portfolio’s performance–for the 12 months ended June 30, 2014, was up 12.6 percent to AUD1.117 billion.

Fiscal 2014 fourth-quarter statutory toll revenue was up 13.1 percent compared to the prior corresponding period to AUD234.1 million. Proportional toll revenue for the quarter was up 11.8 percent to AUD286.7 million.

Transurban’s Sydney network continued to deliver strong traffic growth during the quarter, driven principally by traffic growth in the northwest corridor of the orbital network resulting from the M2 upgrade, which was completed in August 2013.

Average traffic growth across Westlink M7, Hills M2 and Lane Cove Tunnel was 10.3 percent for the quarter.

Revenue growth for the 495 Express Lanes was outstanding, reaching a new daily high of USD161,945 on May 29, 2014. Average daily revenue during the quarter grew 100.3 percent compared to the prior corresponding period.

Transurban increased its ownership interest in the 495 Express Lanes to 94 percent during the period after it completed a capital restructure of the project and acquired Fluor Corp’s (NYSE: FLR) 10 percent stake.

Management declared a final distribution for fiscal 2014 of AUD0.18 per share, up from AUD0.152908 a year ago and in line with management’s guidance for a full-year payout of AUD0.35.

Transurban has guided to a fiscal 2015 distribution of AUD0.39, which represents year-over-growth of 11.4 percent. The fiscal 2015 distribution will be 100 percent covered by free cash flow.

Transurban is a buy under USD7.50 on the ASX using the symbol TCL or on the US OTC market using the symbol TRAUF.

Aggressive Update

Crown Resorts Ltd (ASX: CWN, OTC: CWLDF, ADR: CWLDY) reported fiscal 2014 net profit after tax (NPAT) of AUD655.8 million, up 65.7 percent from AUD395.8 million for fiscal 2013, as consistent performance for its hotels and casinos in Australia was complemented by strong results in Macau.

Results for fiscal 2013 were hurt by a AUD70 million loss booked on the sale of Crown’s stake in rival casino operator Echo Entertainment Group Ltd (ASX: EGP, OTC: EHGRF).

Casino revenue in Macau fell for a second straight month in July, dropping 3.6 percent from a year earlier, as VIP gamblers from mainland China stayed away.

Crown enjoyed a solid recovery in Melbourne during the second half of fiscal 2014, but Macau weakened during the fourth quarter. Casino revenue in Macau fell for a second straight month in July, dropping 3.6 percent from a year earlier, as VIP gamblers from mainland China stayed away.

Normalized NPAT, which Crown uses to account for volatility in its VIP business, was up 35.2 percent to AUD640 million. Normalized earnings before interest, taxation, depreciation and amortization (EBITDA) were up 3.2 percent to AUD782.7 million.

Crown’s share of profits from its 33.6 percent stake in Melco Crown Entertainment rose 91 percent on a normalized basis to AUD291.2 million, while normalized EBITDA were up 0.3 percent at Crown Perth and 2.8 percent at Crown Melbourne.

Management declared a final dividend of AUD0.19 per share, in line with guidance.

Management did announce a revision to its dividend policy. Crown will now pay the higher of AUD0.37 per share and 65 percent of normalized NPAT, beginning with the first half of fiscal 2015.

Crown Resorts is a buy up to USD16.50 on the ASX using the symbol CWN and on the US OTC market using the symbol CWLDF.

Crown Resorts also trades on the US OTC market as an ADR under the symbol CWLDY. Crown Resorts’ ADR, which is worth two ordinary, ASX-listed shares, is also a buy under USD33.

Electronics and appliances retailer JB Hi-Fi Ltd (ASX: JBH, OTC: None) posted fiscal 2014 net profit after tax (NPAT) of AUD128.4 million, up 1 percent from AUD116.4 million for fiscal 2013.

Sales for the 12 months ended June 30, 2014, were AUD3.48 billion, up 5.3 percent from AUD3.31 billion for the prior corresponding period. Comparable sales were up 2 percent.

In an accompanying July 2014 sales update management noted that total consolidated sales were down 3.2 percent, with consolidated comparable sales down 5.5 percent. CEO Richard Murray noted that July sales were negatively impacted by “recent market-wide declines in tablet sales.”

Gross margin was ahead of July 2013, though fiscal 2015 first-half sales will be hurt by the tablet slowdown. Management is “positive” about the pipeline of new products to be released, which it expects will drive “solid” sales growth for the current fiscal year.

JB expects to open eight new stores total in through June 30, 2015, with five slated for the first half of the fiscal year. Management also announced plans to convert 26 existing stores to its JB Hi-Fi Home concept, 17 in the first half.

The initial total sales forecast for fiscal 2015 is AUD3.6 billion.

JB Hi-Fi will pay a final dividend of AUD0.29 per share, up 31.8 percent from AUD0.22 for the prior corresponding period. The full-year payout was AUD0.84, up 16.7 percent from AUD0.72 for fiscal 2013.

Management also announced it will buy back 645,756 shares, or 0.65 percent of the total on issue, at a cost of approximately AUD12.5 million. JB Hi-Fi bought back 1.4 million shares, or 1.4 percent of those outstanding, during fiscal 2014.

Management’s commentary on initial results for fiscal 2015 led to a steep selloff in JB’s shares, as the price on the ASX slid from AUD19.37 as of the close of trading on Aug. 8 to a close of AUD17.46 on Aug. 12.

The tablet slowdown is cause for concern. But management has demonstrated an ability to shift gears and find paths to growth. The step-up in the roll-out of the JB Hi-Fi Home concept, which leverages a solid brand with built-in customer loyalty, is a response that will likely prove effective.

JB Hi-Fi remains a buy under USD18 on the ASX using the symbol JBH.

Mineral Resources Ltd (ASX: MIN, OTC: MALRF, ADR: MALRY), a top mining services provider with a growing iron ore production platform, posted fiscal 2014 operational net profit after tax (NPAT) of AUD249 million, up 38.3 percent from AUD180 million a year ago.

Statutory NPAT was up 28.3 percent to AUD231 million. Earnings per share (EPS) were AUD1.241, up from AUD0.975 a year ago.

Management reported return on equity of 20.2 percent, a 14.1 percent improvement from 17.7 percent for fiscal 2013.

Revenue for the period grew by 73.1 percent to AUD1.899 billion, as earnings before interest, taxation, depreciation and amortization (EBITDA) increased 44.6 percent to AUD554 million.

MinRes’ sale of its 52.6 million Aquila Resources Ltd (ASX: AQA, OTC: AQARF) to a consortium including Baosteel Resources Ltd, owner of China’s biggest steelmaker, and Aurizon Holdings Ltd (ASX: AZJ, OTC: QRNNF), a Queensland-based rail freight operator, at AUD3.40 per share in mid-July pushed the company into a net cash position of AUD260 million, although it did book a 9.3 percent loss in the transaction.

Management reiterated its desire to participate in Aquila’s proposed AUD7.4 billion West Pilbara iron ore project, suggesting it will engage with Baosteel in the very near future about its development plan, according to which MinRes would take responsibility for all processing and mine-related infrastructure as well as the supply chain through to ship-loading.

Contract crushing volumes remained robust in the period, along with other mining services activities, including PIHA, camps and accommodation and materials handling.

Iron ore mining operations produced a 93 percent increase in exported metric, above management’s original target.

Production and sales volume growth of 24 percent and 14 percent, respectively, helped support earnings as the iron ore market weakened toward the end of the fiscal year.

Phil’s Creek and Spinifex Ridge ramped up to their optimum capacity, with the Poondano project entering its rehabilitation phase. Carina increased output by 28 percent as part of the programmed mine development.

Consistent with its policy to pay out 50 percent of after-tax profit, management declared a final dividend of AUD0.32 per share, in line with the prior corresponding period. The full-year payout of AUD0.62 per share is up from AUD0.48 for fiscal 2013.

Mineral Resources remains a buy under USD11 on the ASX using the symbol MIN and on the US OTC market using the symbol MALRF.

Mineral Resources also trades on the US OTC market as an ADR under the symbol MALRY. Mineral Resources’ ADR, which is worth one ordinary, ASX-listed share, is also a buy under USD11.

Rio Tinto Ltd’s (ASX: RIO, NYSE: RIO) aggressive cost-cutting program helped drive a surge in 2014 first-half net profit to USD4.4 billion from USD1.7 billion a year ago.

Record iron-ore production more than offset a near one-third fall in the commodity’s price, while earnings were also bolstered by an improved performance from its smaller copper and aluminum businesses.

Iron ore, a key steelmaking ingredient, accounted for over 90 percent of its Rio’s first-half underlying earnings.

Commenting on iron ore and Rio’s dependence on it, CEO Sam Walsh noted, “Overall, we remain confident of the long-term fundamentals of demand, whilst recognizing the changing nature of China’s economic development.”

Management also indicated that returns to shareholders in the form of stepped-up capital management are on the way following years of heavy investment spending.

Cost reductions exceeded expectations, and Rio also said it would spend less on major projects than expected this year, after stepping up efforts to counter weak commodity prices by selling pits and cutting thousands of staff.

Mr. Walsh has been the main driver of austerity measures at the world’s second-largest iron-ore miner following a spending splurge during the commodities boom years that forced it to take heavy writedowns when prices slumped.

Rio now has a “stronger balance sheet and more options.”

The company increased its interim dividend by 15 percent to USD0.96 per share and could now consider further dividend hikes, a special dividend or a share buyback program.

Net debt declined to USD16.1 billion from USD18.1 billion at the end of 2013, in line with a target set last year.

Rio now expects capital expenditure to fall to USD9 billion for 2014, below its previous forecast of USD11 billion, and to USD8 billion in 2015, less than half 2012 levels.

Management also said it would aim to cut another USD1 billion of annual operating costs, on top of annual cost savings of USD.2 billion achieved since 2012.

Rio Tinto is a buy under USD65 on the Australian Securities Exchange (ASX) using the symbol RIO.

Rio Tinto is dual-listed on the London Stock Exchange. Its New York Stock Exchange (NYSE) listing is an American Depositary Receipt (ADR) that represents one share of the company’s London listing. The London listing and the New York listing both represent the same underlying business as the Australia listing.

Rio’s NYSE-listed ADR–which also trades under the symbol RIO–is a buy under USD62.

The Rest of the Fiscal 2014 Story

Here are estimated dates when remaining AE Portfolio Holdings will report their next sets of operating and financial numbers.

For most this will cover results for fiscal 2014, which ends June 30, 2014. We’ve noted for others that report on a different schedule the period to which the announcement pertains.

Conservative Holdings

• Aberdeen Asia-Pacific Income Fund (NYSE: FAX)–N/A (fund, reports holdings on a quarterly basis)
• AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY)–Aug. 20, 2014 (FY 2014, confirmed)
• APA Group (ASX: APA, OTC: APAJF)–Aug. 20, 2014 (FY 2014, confirmed)
• Australia & New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF, ADR: ANZBY)–Oct. 31,  2014 (FY 2014, confirmed)
• Cardno Ltd (ASX: CDD, OTC: COLDF)–Aug. 19, 2014 (FY 2014, confirmed)
• DUET Group (ASX: DUE, OTC: DUETF)–Aug. 22, 2014 (FY 2014, confirmed)
• M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF)–Aug. 25, 2014 (FY 2014, confirmed)
• Ramsay Health Care Ltd (ASX: RHC, OTC: RMSUF)–Aug. 27, 2014 (FY 2014, confirmed)
• Wesfarmers Ltd (ASX: WES, OTC: WFAFF, ADR: WFAFY)–Aug. 20, 2014 (FY 2014, confirmed)

Aggressive Holdings

• Amalgamated Holdings Ltd (ASX: AHD, OTC: None)–Aug. 21, 2014 (FY 2014, estimate)
• BHP Billiton Ltd (ASX: BHP, NYSE: BHP)–Aug. 19, 2014 (FY 2014, confirmed)
• GrainCorp Ltd (ASX: GNC, OTC: GRCLF)–Nov. 13, 2014 (FY 2014, confirmed)
• Oil Search Ltd (ASX: OSH, OTC: OISHF, ADR: OISHY)–Aug. 19, 2014 (2014 H1, confirmed)
• Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY)–Aug. 21, 2014 (FY 2014, confirmed)
• Spark Infrastructure Group (ASX: SKI, OTC: SFDPF)–Aug. 25, 2014 (2014 H1, confirmed)
• Sydney Airport (ASX: SYD, OTC: SYDDF)–Aug. 21, 2014 (2014 H1, confirmed)
• Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY)–Aug. 20, 2014 (2014 H1, confirmed)
• WorleyParsons Ltd (ASX: WOR, OTC: WYGPF, ADR: WYGPY)–Aug. 27, 2014 (FY 2014, confirmed)