BHP Profit Report Third Quarter 28 February 1998
Thursday March 26, 10:47 pm Eastern Time
Company Press Release
BHP Profit Report Third Quarter 28 February 1998; Issued in Melbourne 11:00 a.m. Friday 27 March 1998.
MELBOURNE, Australia--(BUSINESS WIRE)--March 26, 1998--
Quarter ended 28 February
Results Summary 1998 1997 Change
$ Million $ Million %
Operating profit
attributable
to BHP shareholders
-- Excluding abnormal items 271 378 -28.3%
-- Including abnormal items 125 378 -66.9%
Abnormal Items
The quarter's result included an abnormal loss of $146 million
(no tax effect) from the write-down of Petroleum's Hawaiian refinery
assets to sale value. There were no abnormal items in the February
1997 quarter.
Quarter ended 28 February
Business Division Results 1998 1997 Change
-- excluding abnormal items $ Million $ Million %
Ferrous Minerals 77 64 +20.3%
Coal 33 19 +73.7%
World Minerals (41) 22 -286.4%
Copper (13) 145 -109.0%
Integrated Steel 33 36 -8.3%
Steel Products 84 37 +127.0%
Petroleum 133 246 -45.9%
Service Companies 83 19 +336.8%
Net unallocated interest,
Group and unallocated items (131) (148)
----- -----
Operating profit before
outside equity interests 258 440 -41.4%
Outside equity interests 13 (62)
----- -----
Operating profit attributable
to BHP shareholders 271 378 -28.3%
The major factors affecting the operating results of the Business
Divisions for the quarter compared with the results of the
corresponding period, excluding abnormal items, were:
-- Ferrous Minerals -- higher realized prices for iron ore and
manganese together with lower iron ore production costs;
-- Coal -- lower unit costs, partly offset by the unfavorable
effect of the restatement of Indonesian operations' local
currency monetary items (mainly a tax asset) due to the
devaluation of the rupiah;
-- World Minerals -- production start-up costs at the Hartley
platinum mine (Zimbabwe) and the Beenup titanium minerals
operation (Western Australia), no tax benefit on overseas
exploration expenditure and the inclusion of a dividend from
Samarco (Brazil) in the corresponding period;
-- Copper -- significantly lower average copper prices, unfavorable
finalization adjustments on prior period shipments and a loss at
Ok Tedi (PNG) due to continued weather related operational
disruptions;
-- Integrated Steel -- lower domestic prices, a write-down of BHP
Refractories (New South Wales) to anticipated sale value and
higher raw material costs, largely offset by lower operating
costs;
-- Steel Products -- higher profits from the sale of assets, lower
costs and improved export prices, partly offset by losses from
recently commissioned overseas plants and lower domestic prices;
-- Petroleum -- lower crude oil and gas prices and a higher tax
expense;
-- Service Companies -- profit from the sale of assets; and
-- Exchange rates -- the lower value of the Australian dollar,
relative to the U.S. dollar, had a favorable effect on results.
share price has dropped 2% down this neck of the woods on announcement of the news,
regards,
Angelo |
