Australia-based mining and materials company Arrium Limited has issued its financial results for the first half ended December 31 of the financial year 2015-16.
In the first half, Arrium recorded a net loss of A$24 million, compared to a net loss of A$22 million in the corresponding period of the previous financial year. The company's sales revenues decreased by 14 percent year on year to A$2.76 billion in the given period.
Arrium stated that at Whyalla the competitiveness of its steel business was significantly impacted by the continued decline in Asian steel prices to 12-year lows. In mining, the further sharp fall in iron ore prices through November and December more than offset the earnings benefits from the restructuring it announced last June. Second half underlying earnings for the Arrium Group are expected to benefit from increased earnings in the mining and steel segments, as well as the significant cost reductions across the company. However, external factors such as iron ore pricing, southeast Asian steel prices and margins are expected to be key influencers of earnings.