Premier Investments profit dives, warns on consumer spending: Midday Roundup

Premier Investments, owner of clothing brands Just Jeans, Peter Alexander and Dotti, has posted a 49% slide in yearly profit to $40.5 million, hurt by one-off costs, discounting and soft consumer spending on discretionary items.

But the Solomon Lew-backed company has reaffirmed guidance for the year ahead for earnings before interest of between $80 million and $95 million.

Premier Retail chief executive officer Mark McInnes says trading for the first six weeks of the season has been “very challenging”.

The company says its strategic review is in place, and it focusing on reinvigoration, improving gross margins and cost cutting.

Sharemarket has negative start to week as Greece flags further austerity measures

The sharemarket has had a bad start to the week, as investors continued to watch the Greece sovereign debt crisis unfold.

Greece this morning flagged a fresh round of austerity measures, as former IMF chief Dominique Strauss-Kahn called on European lenders “to recognise that we must take a loss” on the debt.

“Everyone must take it. The states and the banks,” he said.

CMC Markets chief market analyst Ric Spooner said “despite a solid international lead in the form of five successive days of higher prices in the US stock market, local investors are likely to remain fairly cautious early until they get greater clarity on the European situation or a more positive lead from commodity prices and the resources sector.”

Gunns shares up 12% after emerging from trade suspension

Gunns shares have risen 12% this morning after the company emerged from a six-week trading suspension.

The suspension began in early August after the company said it would await a final payout from the Government of $23 million.

The company also released a statement stating that it was ahead in talks to finalise an investment for the $2.3 billion Tamar pulp mill project.

“Negotiations are now well advanced, but not yet complete,” it said. “The company has a range of asset sale processes in progress to meet this requirement.”

$5 billion Macarthur Coal takeover offer extended

Meanwhile, the $5 billion takeover offer for Macarthur Coal, the world’s largest pulverised coal exporter, has been extended.

The offer, from international giants ArcelorMittal and Peabody Energy, is priced at $16 per share.

It needs 50% acceptance for the offer.