OneSteel mining profits drowned out by steel losses
Mining and materials group, OneSteel Limited has announced a statutory net loss after tax of $74 million for the six months ended 31 December 2011, compared to the statutory net profit after tax for the prior corresponding half of $116 million.
Included in the statutory result is an impairment charge of $130 million related to the write down of the assets of the LiteSteel Technologies businesses in the US and Australia, as announced in December.
Underlying net profit after tax from continuing operations for the first half was in line with guidance at $78 million, compared to $133 million for the prior corresponding half.
The underlying net profit after tax excludes: $130 million related to the company’s discontinued operations related to the asset write down of the LiteSteel Technologies businesses and the sale of the Piping Systems business; transaction costs of $16 million associated with the purchase of WPG Resources’ iron ore assets and sale of the Piping Systems business; restructuring costs of $14 million, and prior year tax benefits of $9 million, all net of tax.
OneSteel Managing Director and CEO, Mr Geoff Plummer said: “The first half has seen a further marked change for the company including significant investment to continue the expansion of our resources based businesses.
“The benefit of our growth focus on our Mining and Mining Consumables businesses is clearly evident in our results, with these businesses now comprising approximately 40% of total revenues and both businesses delivering significant contributions for the half. Despite this, our overall performance was disappointing due to the impact of the difficult external environment on our Australian Steel businesses.
“We have made considerable progress in improving the cost and operational performance of these businesses and expect a significant improvement in their overall performance for the second half.”