Other Industrials

Expectations for the minerals and life sciences business of ALS Ltd have improved but questions remain regarding the timing of the turnaround.

The business of workforce provider Programmed Maintenance appears to be stabilising and brokers remain confident gearing levels will ease.

Prices for Incitec Pivot’s key fertiliser products are subdued and brokers are unsure when the market will signal a nadir has been reached.

Mining services business Orica will be flat out making sure its business improvements stay ahead of increasing costs and price re-sets, brokers believe.

Brokers raise the spectre of whether soft September quarter sales numbers for Wesfarmers, particularly at Coles, are a sign of more weakness to come.

Qube Holdings is developing a solution to the complex and inefficient NSW logistics industry and several brokers point out the company’s longer term potential.

The outlook for Qube Holdings is gaining complexity, with the recent contract loss for its Patrick division, while substantial, not considered significant in the longer term.

Herbicide and pesticide producer Nufarm has a strong outlook for FY17, supported by cost savings and a better upcoming cropping season in Australia.

Packaging producer Pact Group is expanding, moving into the manufacture of tablets and capsules with the acquisition of Australian Pharmaceutical Manufacturers.

Packaging container business Amcor has increased its diversified products exposure, prompting mixed responses from brokers.