Steel and mining group Arrium has reported an 83 per cent jump in full-year underlying net profit to $296 million as growth in iron ore exports boosted earnings.
The company, formerly known as OneSteel, said revenue for the year 30 June 2014 rose two per cent on the same period last year to $7 billion.
Arrium managing director Andrew Roberts said the increased earnings reflect the growth of Arrium’s mining business.
“We are now realising the full benefits from our mining expansion,” he said in a statement to the ASX.
Arrium’s steel business remains depressed given the weakness in Australian construction and the high dollar. The division reported underlying earnings before interest, tax, depreciation and amortisation of $51 million, down from $64 million due to lower sales volumes.
The group’s mining consumables business reported underlying EBITDA of $187 million on slightly lower revenue as demand for grinding media in Australasia slumped.
The company announced a final unfranked dividend of 3¢ a share.
Analysts consensus forecasts for the group were for earnings before interest and tax of $503.7 million and net profit of $293.1 million, according to S&P Capital IQ.
On Monday Arrium announced AGL chairman Jerry Maycock would be its new chairman after Peter Smedley departs at the group’s general meeting in November.
Source: TheSydney Morning Herlad
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