Arrium announced a year-to-June profit of $58 million, underscored by strong iron ore profits, a loss in the steel and recycling segment, and a writedown in the company’s beam technology division.
Steel production increased to 2.31 million tonnes from 2.15 million. “We expect the … generally weak domestic and international steel markets to continue through the first half,” Geoff Plummer, Arrium’s Managing Director, told the Sydney Morning Herald.
The company’s steel and manufacturing segment lost $19 million and its LiteSteel beam technology division suffered a writedown of $125 million. It predicts weak steel markets to persist into the first half, making things difficult for that component of the business.
The result was bolstered by mining operations contributing $303 million.
Plummer has not ruled out cutting jobs or steel mills in the future.