Mining and materials group Arrium has announced a $474 million write-down on its manufacturing business, blaming a weak construction market, strong dollar, and difficult global conditions.
The company said it would be writing down the goodwill in its steel manufacturing unit by $431m, and it also posted a further $43 million hit to asset values in its distribution segment.
“These impairments are non-cash in nature and have no impact on operations,” the company said.
Later this month the company, formerly known as OneSteel, is expected to post a $40m interim profit and analysts expect the conglomerate to make around $160m for the financial year.
While strengthening steel prices are expected to buoy the company, the lion's share of its profit will most likely be earned by the iron ore division.
The company owns a number of mining operations in South Australia and last year changed its name to help reflect the diversified nature of its earnings