Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 9.9% to $436.1 million
Earnings before interest and tax (EBIT) increased 12.3% to $339.9 million
Net operating profit after tax and minorities (NOPAT) increased 15.1% to $197.5 million
Net profit after tax and minorities of $207.0 million after including tax benefit
Earnings per share (EPS) up 13.8% to 34.5 cents
Operating cash flow up 10.3% to $276.5 million
Operating sales margin based on EBIT improved to 7.9% from 7.6%
Operating return on funds employed (ROFE) based on EBIT rose to 14.6% from 14.4%
Operating return on equity (ROE) rose to 13.3% from 12.9%
Net debt to net debt plus equity gearing ratio, inclusive of derivatives, up to 33.5% from 31.4%
Net debt, including derivatives, increased 20.8% to $831.1 million
Fully franked final dividend of 10.5 cents, taking total dividends for the year to 18.5 cents
MARKET
Activity in the segments that impact OneSteel revenues rose approximately 2%
The construction sector that accounted for 52% of OneSteel’s revenue grew 4.9%, with engineering construction (20% of revenue) up 5.0%, non–residential construction (20% of revenue) expanding 6.5%, and residential construction (12% of revenue) up 2.1%
Mining production, which accounted for 10% of revenue, expanded 3.3%
The segment of Other Manufacturing, that accounted for 10% of revenue, fell 3.6%
Auto manufacturing, which accounted for 5% of revenues, was flat
Agriculture, the segment that accounted for 5% of OneSteel’s revenue, was down 17.6% reflecting the ongoing drought
OPERATIONAL
Total Australian steel tonnes despatched increased 0.1% to 2,278,322 tonnes
Domestic tonnes despatched increased 7.8% to 2,200,545 tonnes
Export tonnes despatched fell 156,392 tonnes to 77,777 tonnes, representing 3.4% of total steel despatches
After adjusting for one–off projects, domestic tonnes increased 5.6% to 2,097,689 tonnes
Underlying price per tonne for domestic steel sales increased 2.6%
Cost reductions of $40 million and revenue enhancements of $150 million together offset inflationary and raw material cost increases of $159 million.
Staff numbers were steady at 7,526*
Sales per staff member up 7.3% to $571,000*
The Lost Time Injury Frequency Rate (per million man hours worked) improved by 44% to 0.9
The Medical Treatment Injury Frequency Rate (per million man hours worked) improved by 31% to 8.1
* the staff numbers and sales per staff outcome on pages 2 and 3 do not include staff numbers or sales of the Australian tube Mills joint venture that was formed in March 2007
The financial information presented for the years 2000 to 2004 on pages 2 to 33 and on page 62 of the 2007 Annual Review is based on information prepared under previous AGAAP and has been adjusted to exclude goodwill amortisation from earnings. Securitisation is included in the debt and funds employed figures. the 2005 figures presented have been restated under Australian equivalents to International Financial Reporting Standards (AIFRS). One–off benefits relating to the reversal of impairment loss on transition to AIFRS in 2005 or arising from tax consolidation in 2004 and 2006 have been excluded from the financial information to enable like–for–like direct comparison between the periods presented.
In 2006 and 2007 net debt includes the cross–currency interest rate swaps that were previously classified as interest– bearing liabilities up until 2005 and interest rate swaps that were not recognised on–balance sheet. this has been done to enable comparison with prior period figures.
Pro forma numbers are used for the 2000 and 2001 numbers and include the results of all businesses as if the assets and operations of all businesses spun out from BHP were part of the OneSteel Group from 1 July 2000 to 30 June 2001.
Australian tube Mills, which became a wholly owned subsidiary of OneSteel on completion of the OneSteel and Smorgon Steel merger on 20 August, announced a restructure of its pipe and tube operations
completion of OneSteel and Smorgon Steel merger
OneSteel announces it is to acquire Fagersta Group, Australia’s fourth–largest stainless steel distributor
OneSteel announces changes to the executive service agreement of Managing Director and chief Executive Officer Geoff Plummer whereby the agreement will not terminate at the end of the initial five year period that arises on 2 May 2010 but instead will continue on an ongoing basis
OneSteel announces net operating profit after tax and minorities of $197.5 million for 2006/07
**June 2006 Net Profit After tax and Minorities includes the one–off tax benefit of $15.9 million arising from finalisation of tax consolidation values.
**June 2007 Net Profit After tax and Minorities includes the one–off tax benefit of $9.5 million as a result of derecognition of deferred tax liabilities on disposal of shares to a jointly controlled entity.
*** the June 2007 despatch tonnes presented on pages 2 and 3 have been normalised to include the results from the business that OneSteel contributed to the Australian tube Mills joint venture as if the business had remained part of the Distribution segment for the full year.
