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(generated from captions) emails exchanged among the officers, some of which are

described as racist and others

as containing violent pornography. The Police Union says reports about what the

emails contain have been

exaggerated and it's playing

down the contents. There's been reports that there or images of people being tortured. I'm categorically

advised that is not the case.

as Some of the racist material is

as mild as the occasional joke. Butt allegations are

serious and potentially humiliating enough to have led

to two of the police officers

resigning rather than having to

face the hearings. And in March

this year, a sergeant involved

in the inquiry resigned and

then committed suicide in his

station. Victoria's top cop is

promising to pursue all

involved. There is a range of

behaviour so some matters have

already been dealt with. At the

lower end they've received

bonds or fines because of the

magnitude of what they

doing but we're in the process of working our way through

serious matters. The Victorian that. We have some quite

Premier John Brumby wouldn't

weigh in but concerned about a cultural problem within the

Victoria Police They are very

serious issues. They are being fully investigated and they

will be dealt with with the

full force of the law. And there's purposes other than those who use work email for

this business. I'm also advised had

this material been sent from a private computer to another

private computer there's no

issue at all. It was the fact

it was transmitted on the

police internal system. The 10

will learn their future on the officers under investigation

force over the next two weeks.

Another Australian soldier

has been killed in Afghanistan,

the third in five days. 28-year-old Jarred McKinney from Brisbane's 6

was on patrol in the of a -

with the Afghan National Army

to the west of Oruszgan

Province when he came under

heavy fire. I regret I'm this morning to announce that

an Australian soldier has been

killed in action during an

intense fire fight with Taliban

insurgents. He was shot early

in a battle that raged for

three hours and was only

brought to an end when a coalition Apache helicopter

strafed the area. This was

Lance Corporal McKinney's

second tour of Afghanistan, he

was married with a young

family. More than 50 people

have died and almost 100 others

have been injured in a series

of attacks across Iraq. Targeting local government and

security forces. In the

deadliest of the 15 bomb

blasts, 30 people were killed

when a soo side bomber targeted

a police station in the south

western city of Kut. A similar

attack in Baghdad also on a

police station killed 15 people.

people. The violence occurred

just a day after US troop

numbers in Iraq 50,000. With be a official end numbers in Iraq fell below

to their combat role due at the

end of the month. A quick look

at the weather now.

That's all from us. If you

want to look back at our interviews with Bob Katter,

Xenophon and Adam Bandt or

review any of our stories or

transcripts visit the web site.

I will see you again tomorrow night. This Program Is Captioned

Live.

Good evening. Welcome to

Lateline Business. I'm Brigid Glanville. Tonight - bumper

profits. But BHP Billiton says it won't overpay Potash. Ultimately the it won't overpay for

shareholders own this company

and it's my job to create more

value for them, not to do

costs. Also on tonight's anything, any one thing at any anything, any one thing at

program - we talk to Asciano

boss Mark Rowsthorn. Will his expansion plans hit the buffers against Queensland Rail? Noits in the necessarily Queensland

Rail's business. It's new

growth in the market. So the

current market is set to double

over the next five to seven participate. And Seven Group years. N and we'd like to

Holdings posts a profit and

Kerry Stokes wins again. Stokes has grabbed hold of Seven's

cash. He has an ungeared cash. He

company with net debt around

about 3 million. And this is ultra

ultra conservative. To the

figures markets. Terrible housing

figures in the US sent Wall

Street tumbling.

Rising commodity prices have

helped the world's biggest

miner BHP Billiton more than

double its profit to $14

billion. It's a result that

will help BHP in its $43

billion takeover bid for

Canadian based Canadian based fertiliser

company Potash. In a joint

announcement in both London and

Sydney tonight, the company

said record sales volumes in

iron ore, coal for steel making

and petroleum products were

among the key drivers of the Robertson has been looking at result. Reporter Andrew

the numbers and he joins me now

in the studio. Andrew, a year

took of recovery for BHP after it

took a battering at the hands of the global financial

crisis? Companies like BHP are

very much beholden to global

Billiton's profit tonight commodity price and BHP

reflects a recovery in the

price of many commodities from

the depths of last year. So for

example revenue from things

like base metals was up 47%,

iron ore up 11%, and in the petroleum products rose 22%,

smaller divisions things like

stainless steel making

materials up 54%. Diamonds and specialty products rose 42%. It won't all good news, though.

Revenue from coal for those steel-making and energy was

down substantially because of a

big fall in the price of coal.

The future of commodity prices

and bikt's earnings depend s

very much on the outlook for

the global financial crisis.

challenging times ahead. We

remain cautious on the remain cautious on the short-term outlook and believe

recent volatility, triggered by

sovereign debt fears in as well as the government sovereign debt fears in Europe,

tightening policies in chain

will continue in the near term. Looking ahead, the key question

for the OECD will be the impact

of growth, on growth of

governments withdrawing the

unsustainable stimulus packages

that they were forced to introduce during

financial crisis. As a sign of

BHP Billiton's confidence in the

the longer term, the company

spent $12 billion last year on capital capital investment and

exploration. And of course,

the 43 billion dollar bid for

Canada's Potash is of course in

the uppermost of everybody's

minds. What did Marius Kloppers say about that tonight? That

hostile bid for Potash has been

rejected out of hand by the Canadians who've sought the

help of the a white knight to try to

BHP Billiton's strong profit

tonight says, it sends a

message to potential rivals who

may also be considering billeding for Potash that BHP Billiton has the

Billiton has the ability to stub stangsly raise its offer. BHP Billiton's shareholders are not that impressed with the

company's bid for Potash.

They're concerned that owning a

fertiliser company will make

BHP Billiton away from its core

businesses of mining. And

they're also concerned that 70% of

of takeovers add no value to

the acquiring company. Now, BHP Billiton has sought to reassure shareholders he knows what he

is doing. What I can tell you

is that I will be as

disciplined on this bid as I

have been on every other have been on every other

endeavour that we've been on because ultimately the

shareholders own this company

and it's any job to create more value for

value for them not to do any

one thing at any cost. Some commentators have been saying that the is bad for business and also bad for investment. Did Marius

Kloppers have any reassuring

words tonight? Well, as Julia Gillard and Tony Abbott

negotiate with the independents

in Canberra, what everybody is hoping that any deal the former

government actually holds for a

lengthy period of time.

Business is very concerned about prolonged instability.

But Marius Kloppers has a more

sanguine view. He says the

biggest issue BHP Billiton has

faceed in Australia over the

last year is the resources

superprofits tax. He is

confident that nothing will change Billiton despite the election

result. I'm not a good political commentator but I can

tell you that whether the government in Australia is

formed tomorrow, next week or

whatever happens, other than

that, what we are doing today

is we are diligently working on

investment opportunities that

are going to make us put more money into Australia. I was

prepareing this report tonight Woolworths Australia's biggest

retailer is reporting tomorrow

and Michael Luscombe the boss

there must wish he was a miner.

Both woolies and BHP Billiton

bring about $50 billion

each in revenue. BHP Billiton's

profit tonight 14 billion,

woolies' profit tomorrow probably around $2 billion. Thanks for joining

us. OK.

Suncorp Metway has doubled

its profits helped by asset

sales and falling bad debts. Net

at $780 million. But as Simon

Palan reports, there are

lingering concerns over the

banking arm's exposure to

business debt. Major weather

events in Perth and Melbourne

triggered a flood of insurance

claims. But banking and

insurance group Suncorp Metway

appears to have weathered the storm. We are very much storm. We are very much in

control of our business, and to

that message I gave in October,

which is keep your tanks lawn, that message continues

where we're running our

businesses fast and hard.

Suncorp Metway's full year net

profit has increased to $780

million. We've made considerable progress. We're pleased with the increased profitability,

but if you reflect back to

return on equity you'd have to

say we've still got a long way

to go. Suncorp's general

insurance business includes

brands like AAMI and GIO.

Profit in that division rose

34% to $557 million. The

company's life insurance profit

came in at $222 million.

Those results were boosted

by the sales of LJ Hooker and

Suncorp's joint venture

insurance interests. Also

helping the bottom line, bad

debt charges have fallen

considerably as the company recovers from the global

financial crisis. The reduction

in bad debt charges are flowing bank has started to get a stabilised position. The bank's capital position improved quite

significantly, which would give

some comfort for investors. Analysts say Suncorp's

insurance division is well

placed but they have some

concerns over exposures in its banking operations,

particularly in business

lending and commercial

property. Westpac is expecting

bad debts in small to medium

sized businesses to rise.

That's an area That's an area where Suncorp

has a large presence. It's also one of the four big exposure to the developer

behind struggling discount

shopping centre operator

DFO. The issues confronting the

bank are not limited to asset quality. They also go to the

margins that they're earning on

their loans. The issues they're

confronting there are the cost

of funds. This is both the

cost of depositses the cost of their short-term wholesale

funding and their long-term funding and their long-term funding. Suncorp's shares were

up 2.5% to up 2.5% to 7.97. The company will pay a final dividend of 20

c, bringing the full year

dividend to 35 c. For news on

local market I spoke to David Halliday from Macquarie Private Wealth. David Halliday a big

drop in home prices in the US.

Which saw stocks fall there.

Did that hit trade in

Australia? Pretty much all of

it. It was very disappointing

today. Down about 1.5%. The

sellers were in control right

as the start. The catalyst was came out in the US last night.

The underlying concern is not

just the housing figure, it's

all around the fact that it

looks apparent that the US is looking at looking at a double-dip recession scenario. Many now

looking at that being a

possibility. If that's the

case, that doesn't augur well for equity markets globally.

Our market following on from

that. Throughout August we've

had a pretty patchy reporting

season. Some highlights but

certainly some low light certainly some low light as

well, and overall it wasn't the

strongest reporting

we've seen to date. All those factors starting to weight. We

have a hung Parliament. There

is a lot working against the

market. Today we started to

factor a lot of that in with

the 1.5% fall. As we heard

earlier in the program, BHP

Billiton has release ed its

annual results. What's your

asne. Hard to judge the market

reaction. The overriding issue

is the takeover for Potash in

Canada and that's a 40 billion

bid and that really is what's

driving sentiment at the

moment, but underneath it all, BHP Billiton delivered a very

solid profit solid profit figure, 12.5

billion, 45 c dividend that was

bang in line with the market's

expectation. We were looking

for exactly those numbers. The commentary certainly won't ruffle any ruffle any effecters. I don't expect to see wide-ranging down grades but not wide-ranging

upgrades when analysts publish their research tomorrow. In the

the absence of any major moves internationally I wouldn't

expect a huge move either way

from BHP Billiton in the back

of this profit result.

Nonetheless it was a very, very solid performance. They improved their cash position.

Their outlook while not overly bullish or upbeat certainly was

quite positive. They did point

to volatility in the global

economy but nothing to worry about there. Engineering

contractors Worley Parsons have

suffered a sharp slide in

profits. What did investors dislike about that the

most? They just didn't like the

profit result, really. The net

profit was

previous corresponding period.

It was about $4 million below

the number we were looking for.

That was where most of the disappointment arose. outlook statement the company

was delivered was quite upbeat.

The volatility in the order

book had diminished somewhat in

the second half of 2011. They

saw that persisting into 2011.

From the company's perspective

the outlook statement was quite positive but it wasn't enough

to save the shares during

trading today. The market took

to them with a stick. Stock was

down just over $2. That equates

to a 9% fall. David Halliday

thanks for joining us. Thank you. To the other major movers

on the local share market.

Rail and port operator

Asciano has tripled its annual

losses to nearly losses to nearly $1 billion. Profits were up and earnings

came in on target at $724 million. But a hefty writedown

of 1.1 billion wiped all that

out. Earlier I spoke to

Asciano's CEO Mark Rowsthorn. Thanks for joining Lateline

Business. Thank you. Your

earnings forecast has been well

received but you still have a big debt pile you have to get

through. How are you going to

do this ? We've got a well

considered debt strategy over

the medium term.

thing obviously is to deal with

our maturity in 2012, May

our maturity in 2012, May 2012, which is 2.25

well planed to do this to

embark on a non-bank

refinancing of that. So we've

got plenty of time. The plans

are in place. We'll execute

over the next 12 to 18 months. Ur relying on Queensland as a key growth Queensland as a key growth area

for the '. Whereabouts in the

State do you see that

growth? It's primarily around the coal regions, the coal regions, in central

and northern Queensland. We're

hopeful of attracting some new

business into the system in business into the system in the north and Newland system but

equally in the Blackwater and

Goonyella systems. There are problems in Queensland. While you have been eating into

Queensland Rail's market share,

there is another player wanting

some of that and that's under

the Queensland Coal Consortium

bid. If that bid is successful,

where will your business in

that State come from? There is

a difference here. The low rail assets of the business, the

coal miners have put a bid into the Queensland Government, we understand they're in due

diligence now. The above rail

operations are distinct from

that. We compete against QR,

Queensland Rail. We've been

successful as you say taking to

paid 45 million tonnes of coal

from them. That's anticipated

to be in 2012.

done 14 million tonnes. We'll

do 30 this year and move it to

45 in F 12. We expect that

growth to continue. Moving to

Victoria. At the moment there are

are some big factors at play. The Victorian Government is reviewing capacity particularly at the port of Melbourne. If

another player enters the

market there, Asciano will be

greatly affected. What plans do

you have in place if this

happens, given you have the lease there

lease there until 2017? At the moment, the Port of Melbourne is conducting around capacity and competition

issues. We've met with the

Victorian Government

continually over the last 12 month and we will embark on month and we will embark on - obviously respond to obviously respond to that

document. We think there is a

better plan and a better

alternative which we'll roll

out over the next couple of

weeks. But realistically,

there is pressure on the

Victorian Government to expand

the port and move, get transport off the roads. That's

true. But equally, if you look at the port's plans going say

to 2035, Victoria has to cater

for 8 million containers going forward A the the moment it's two. What they're looking for

this in this process is

certainty around the next

million containers but we think

we should look at this in terms

of a long-term plan and to do 8

million containers, it will cap

the opportunity with east web

dock which is being contemplate

bid the Port of Melbourne and

so the other areas, July and

Hastings, they need to be considered in this. must be concerned that if it

goes through it may eat into

your profits, given the

containers ports business is

such a large money earner for you? Oh it's you? Oh it's a crucial part of

our business the containers

ports N terms of our long-term

planning, we've assumed that a

third operator will enter in

Melbourne. Let's assume it's Hutchison

Hutchison who have been

successful in Sydney and

Brisbane. If we look at say the

worst case of them market in financial year 15,

2015, we see our volumes being

plateaued for about 30 months.

So yes, it does have a financial impact. It is into

the medium term. And we're

still obviously wanting to resist development at east web

dock because it cuts into our

current customers. We will be defending our customers' interests and interests and business going

forward If those volumes

plateau for 30 months how

comfortable are you about able to pay off that big

debt? It doesn't have a

material impact on material impact on the debt. The debt at the moment, the 2.25, will be dealt with over

the next 18 months. We have currently got adequate

liquidity in our business and

the leveraged levels for a

business of our type and the

cash flows we generate is

adequate and satisfactory for

the business that we've got.

Mark Rowsthorn we'll leave it

there but thanks for joining Lateline Business. Thanks.

Staying with mining and Oz Minerals swung back into profit

today. A day after being slapd

with a lawsuit over 2008

disclosures. 150 retail

investors launched a class

action, claiming to have lost

around 18 million dollars when

the share price fell by 80% and

was suspended two years ago. It

followed the full disclosure of

the company's debt problems, 10 months after it was allegedly aware aware of financial woes.

Investors allege Oz Minerals

understated liabilities by

around $300 million and failing

to inform the market of its

refinance and refinance and insolvency risk. Today, Oz Minerals' net profit

for six months to June was just over

over $400 million, compared

with the loss of around $580

million a year earlier. Kerry

Stokes' new media and mining

conglomerate, Seven Group

Holdings, has posted its first

set of results. Net profit for

the two months was

million. Largely down to the

merger in late April. An while

some analysts think the group

is in good shape, the market

isn't so sure. In the battle

for ratings supremacy, Channel

7's director David Lechie

admits the station has been burnt by the sizzling success of Channel 10's

'Masterchef' We're still the No. 1 network. We're still

performing right across the

suite of programs. Yeah, we got

hit a bit by a program on

Channel 10, which knocked out a

few of our programs. We're

at the moment. And we intend to

catch up on where we were before. But a number of

analysts felt like they'd been

left behind due to a

communication breakdown during the group's results presentation. In terms of

today's briefing, there were some technical problems that

prevented a really close

investigation by the analyst

community particularly those of

us who were on-line. Seven grub

holdings has been trading since the end of April when Kerry

Stokes merged his media and

television interests with his equipment and management

the group has posted a profit

of around $719 million. But

most of that is a result of the

merger. Strip that out and

you're left with a net profit

of $28 million. The media

group was a staff performer

with big earnings in the television network and yahoo

seven, but earnings in

magazines were slightly down.

And Westrac was a strong

contributor, thanks to its

presence in China. Distribution

of the caterpillar line is growing and the group also took

a stake in the agricultural

Bank of China to finance locust sure it will be a

success. Caterpillar is a

premiumly priced product. And

there are many comments to the

effect that the Chinese are far

more price sensitive in their selection of earth moving

equipment and the other product

lines. Despite the good results, there's been a

lukewarm reception to the merged group since it listed

with the stock trading well

below its opening share price

of $7.50. There is certainly a

negative odour Stokes' creeping takeover, never paying a takeover premium, whether it's Seven

Network, West Australian

newspapers, the CMJ, the consolidated media run he is

having now. Seven hold ing

group says it's worth more. I'm

sad the market hasn't yet done

the calculations as to the

relative worth of the company.

I think what actually happened

is it was fairly expected

there'd be a natural rotation of shareholders

the scheme went flew. To some

extent there were some natural

sellers at that time. Analyst Roger Coleman says he thinks the group is a good investment

with low debt. He has an

ungeared company with net debt

around $3 million. This is

ultra conservative. Whether

there's a worldwide financial

Holocaust coming or one for

Australia only or whatever you

like to call it, he's made

himself very low risk. And he

predicts the share price recover to beyond its opening

price within a year. The

controversial decision to cut

almost 2,000 jobs at clothing

and footwear manufacturer Pacific Brands has paid

dividends. Last year's big

losses have become a profit

this year of $53 million and

revenues are up 11%. Pacific

Brands owns iconic labels including Bonds, Hard Yakka, King Gee and Clarks. The

company has shifted almost

allful its manufacture offshore

viable to produce in Australia. A strong improvement

improvement in margins came from and offshore sourcing. Pacific

Brands shares were up nearly

12%. Qantas says it will add

66,000 seats per week to its

domestic network. As part of

plans to increase capacity by

9.6%, it will be introduced

over the next nine months.

Qantas Chief Executive Alan Joyce said seven additional

aircraft would be Qantas network this financial

year. Before we go a look year. Before we go a look at what's making business news overseas. The 'Wall Street

Journal' has those terrible

housing figures, and the potential impact potential impact on the US economy. Will they generate a

new recession or just hold back

a recovery? London's 'Financial

Times' says investors are

scrambling for safe havens as

fears for the global recovery

grow. And that's all for tonight. You can watch Lateline

Business Monday to Thursday at

8.30 each night on ABC News 24

as well as well after 'Lateline' on

ABC1. I'm Brigid Glanville.

Thanks for your company of the goodnight. Closed Captions by CSI You OK in there? Need a refill? No, I'm fine, thanks. DOORBELL CHIMES That'll be Claire. Hey! Am I late? No. Can I try again? Come on through, I'm still cooking. Yeah, that's why I was trying to be late. Oh, shit! Sorry, no offence. Oh, OK. See ya! Who asked you to set me up? Who ever asked you to do that? You did. Apart from me. Good looking, isn't he? Didn't notice. Not my type. Not interested. And those glasses are going to have to go. Damn it! Gotcha! I'm going to have to drink now. I brought my car. Take these through, talk to him. God! And Claire, don't, you know... What? You know. Men like a sense of humour. Yeah, theirs. And don't scare him. Don't be scary, don't be funny, gotcha. And don't get onto what he earns. I don't do that. You always do that. No funny, no scary, no money. How hard can it be? I give her one sentence. So, what do you do? Rich men. Sorry, it's a joke. Sorry. OK? Yes, er... just, er... admiring the patio. Did you have that last time? Yes. Oh. OK. It's nice though, it's a nice patio. Everyone all right? Need any help? Yeah, do you? No, no. All your own work? The garden? Except the patio. So, Tom, how's work? Oh, you know. Same as ever. Tom's a research scientist. Ah, a scientist, right. What do you do? About ?250,000 a year. Sorry, hang on a minute. DOORBELL CHIMES Your cab, I said five minutes. So early? Yes, sorry, got a meeting first thing. What's wrong? I've lost my shoes. How can you lose your shoes? Did you take them off? Well, obviously he took them off. You check the bathroom, I'll look next door. Do you always take your shoes off when you eat? Yes. Did you hide them? Mmm-hmm. Why? You were leaving. Oh, my God! I know. You barely spoke. We still haven't. Tell me everything. Disgust me. Who's that? Nobody, my mother, go away. OK. He's up. Later. We've still got his shoes. Do you want me to send them round? No hurry. Tom? Yeah? Is there a man's dressing gown in there? Yes. I was hoping you wouldn't notice it. Was specifically pointing it out part of the plan? Old boyfriend? He is now. Twins in the family, either of you? No. Well, there's news on that. It's twins. But we had scans. Tom. The scans were wrong. There was one heartbeat. Bring it to me, that's it, nice and slow. Careful. Good. Tell him he's here. Gemini has landed. "Gemini"?! Who thought that one up? Is that supposed to be clever? And for goodness sake, let go of her, she's not going anywhere. Claire, I'm sorry, we have some questions, it may take a while. Some questions? I apologise in advance for the quality of the coffee. You have some questions? A few, yes. You have my husband in a box!! Don't let them hear you call it a box, the tech boys. Total self-contained life-support system. It's the safest place in the world, apparently. As long as the batteries don't run out. Let her go, it's fine. LOUD BEEPING What's that? What's that noise? He's having a sort of, well, a sort of panic attack. Get him downstairs, let's get him stabilised. To me, guys, come on. Be careful though, slowly. Claire, this way. Mrs Jackman. Maybe you should call me Mrs Jackman, what do you think? Mrs Jackman. Morning, Dr Jackman. Morning. Mrs Jackman all right? Fine. How was your weekend? Twins. Twins! BEEPING Sorry, could you do that again for me, please? Did I bring the wrong thumb?