Australia''s manufacturing sector grows

Australian manufacturing expanded after its index rose 2.2 points to 51.4 from January when it slumped 8.4 points.

According to a report released by PricewaterhouseCoopers and the Australian Industry Group said a reading close to 50 indicates manufacturing is stagnating and adds to signs the nation''s economic expansion may cool this year amid rising interest rates and fallout from the U.S. housing recession.

Australian Industry Group chief executive officer Heather Ridout said it was clear that concerns over global economic prospects, especially in the U.S., higher Australian interest rates and rising input costs have had an ongoing negative impact on the sector.

The report said company investment and hiring could also slow if Reserve Bank of Australia Governor Glenn Stevens adds to an increase in the benchmark interest rate last month.

Asciano in $71.1 million loss

Transport infrastructure company Asciano today announced an inaugural first-half loss of $71.1 million due to demerger and restructuring costs sending its share crushing to an all time after it shed 8.3%.

Asciano said the net loss reflected a number of special items relating to the demerger of Asciano from Toll Holdings, and the restructure of its grain business.

Following its spin-off from Toll Holdings in June 2007, Asciano said revenue from ordinary activities rose 3.9% to $1.5 billion from $1.45 billion. Earnings before interest and tax rose 21% to $236,000.


""Asciano has commenced the downsizing program in our grain business. While discussions continue with the grain industry, in the absence of volume risk being mitigated through the introduction of take-or-pay contract, Asciano will close the business,"" Rowsthorn said.