Fortescue's Return on Equity Slips to 7%

The video discusses the financial performance of major Australian companies. Wesfarmers reported an 87% drop in first-half profit due to poor performance in the UK, but shares rose due to a positive turnaround strategy. Fortescue Metals' earnings were stable, but the dividend cut led to a stock price drop. BHP's earnings were below market expectations despite a 25% profit increase, with plans to redistribute profits to shareholders and maintain its dual listing structure.

What was the primary reason for Wesfarmers' 87% drop in first-half profit?

• Increased profits from Coles

• High customer investment in Australia

• Successful operations in the UK

• Poor performance of Bunnings in the UK

Why did Fortescue Metals experience a dividend cut despite a net income of $681 million?

• Successful diversification of products

• Increased demand for lower-grade iron ore

• Rising coal prices

• Preference for higher-grade iron ore by Chinese steelmakers

What was the market's reaction to BHP's earnings announcement?

• Shares increased by 5%

• Shares increased by 10%

• Shares remained stable

• Shares decreased by close to 5%

What strategic decision is BHP making regarding its US shale business?

• Maintaining its current US shale operations

• Expanding its US shale operations

• Investing more in US shale

• Exiting its US shale business

What is BHP's plan for its dual listing structure?

• Move all listings to London

• Move all listings to Sydney

• Maintain the dual listing structure

• End the dual listing structure