The plunging iron ore price has weighed on Arrium’s first half loss of $1.5 billion.
The soft numbers were largely the result of $1.335 billion in impairments which the company had previously flagged when iron ore prices fell about 50%.
“We expect demand for seaborne iron ore to remain strong but prices in the second half to continue to be subject to the supply/demand balance and negative sentiment,” Arrium said.
Despite big losses Arrium boss Andrew Roberts was positive the company had “performed well operationally” and the fall of the Aussie dollar would assist the company this half.
“External factors, including the sharp and substantial fall in iron ore prices, as well as historic low South East Asian steel margins, made the half a very challenging one,” he said.
“Going forward, we are well positioned for improvement through our increased leverage to a stronger outlook for steel.”
No dividend was allocated. Here are the numbers.