Arrium $474m Writedown

Submitted by Share Trading on 7 February, 2013 - 08:22

Australian steel producer, Arrium (ASX:ARI) has written down $474 million on its steel division.

  • $474 million impairment charge against its steel manufacturing division and in particular its Australian Tube Mills unit where its goodwill was written down to zero, "as it does not expect to realise this value on a sale of the business."
  • Remaining goodwill is down to $120 million.
  • The company noted that the writeoff was related to he high Australian dollart
  • Arrium also noted that the impairments "are non-cash in nature and have no impact on operations."
  • The company forecasts iron ore sales for fiscal 2013 to be 8 to 9 million tonnes, up 8 million on the previous corresponding period.
  • Arrium stocks closed at 94 cents, up 0.5 cents.
  • Arrium interim profit report is due on February 19.