OneSteel announces $75 loss, pins hopes to mining

OneSteel today announced another dismal half-yearly result, with a statutory net loss after tax of $75 million for the six months to 31 December 2011. In an effort to diversify away from unprofitable steel manufacturing the company has increasingly turned its attention to mining.

Included in the results is an impairment charge of $130m related to the write down of the assets of LiteSteel Technologies businesses in the US and Australia, announced in December.

The results also include transaction costs of $16m associated with the purchase of WPG Resources’s iron ore assets and sale of the Piping Systems business, as well as restructuring costs of $14 million.

OneSteel chief executive Geoff Plummer said the first half of the June to December period saw a marked change for the company including the expansion of its resources-based businesses.

In the last year, OneSteel has focussed its growth strategy on mining and mining consumables.

In the company’s half-yearly results statement on the Australian Stock Exchange (ASX) Plummer said OneSteel’s mining-related businesses now comprise approximately 40% of total revenues.

“Despite this, our overall performance was disappointing due to the impact of the difficult external environment on our Australian Steel businesses,” Plummer said.

Image: Adelaide Now

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