Aur­i­zon faces new set­backs

Townsville Bulletin - - NEWS -

AUR­I­ZON has out­lined fresh im­pair­ments of $ 606 mil­lion with its in­ter­modal and bulk trans­port divi­sions con­tin­u­ing to face a chal­leng­ing mar­ket. The rail freight op­er­a­tor ex­pects full- year un­der­ly­ing earn­ings will be $ 836 mil­lion, within its re­vised guid­ance range of $ 800-$ 850 mil­lion. How­ever, it could be left fac­ing a full- year loss af­ter flag­ging a fresh $ 526 mil­lion write­down in its bulk busi­ness and trans­for­ma­tion­re­lated costs of $ 80 mil­lion, tak­ing its full- year im­pair­ment charges to $ 927 mil­lion.

Aur­i­zon took $ 321 mil­lion worth of write­downs in its first half re­sults and, in April, cut its full- year earn­ings guid­ance af­ter a $ 115 mil­lion hit from dam­age and lower haulage vol­umes caused by Cy­clone Deb­bie. FORTES­CUE Me­tals is tar­get­ing a fur­ther re­duc­tion in costs this fi­nan­cial year but ex­pects to keep iron ore ship­ments steady.

The world’s fourth- largest iron ore ex­porter shipped 44.7 mil­lion tonnes of iron ore in the fi­nal three months of 2016- 17, up 3 per cent from a year ear­lier. That took full- year ship­ments to 170.4 mil­lion tonnes, just above the com­pany’s guid­ance of 165 mil­lion to 170 mil­lion tonnes.

Cash costs were trimmed 7 per cent from the March quar­ter, and full year av­er­age $ US12.82/ wmt was down 17 per cent.

Chief ex­ec­u­tive Nev Power said the Pil­bara miner was well po­si­tioned to con­tinue to im­prove costs, in­vest in the core iron ore busi­ness and main­tain pro­duc­tion lev­els in the 2017- 18 fi­nan­cial year.

REAL COUP: Dan­cenorth artis­tic di­rec­tor Kyle Page with Dan­cenorth's lat­est award.

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