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Results wrap: Atlas Iron still in the red, Adelaide Brighton pays special dividend

Wednesday, 31 Aug 2016 09:49:55 | Stephen Letts

Atlas posted a full year loss of $159 million. (Supplied: Stephen Stockwell)

Junior iron ore miner Atlas finds itself still in the red despite a $1.2 billion improvement in its fortunes last year.

Atlas reported a full year loss of $159 million, a significant turnaround from the impairment blighted $1.4 billion loss of 2015.

The company's profitability was again hit by a series of asset and inventory write-downs, as well as restructuring costs totalling $101 million.

Despite a 9 per cent increase in sales revenue to $786 million and record exports of 14.5 million tonnes, Atlas still booked an underlying loss - with one-off items stripped out - of $58 million.

Atlas said the loss was in large part due to lower prices over the year, with average realised cash prices slumping 24 per cent to $55.47 a tonne compared to $59.96 a tonne in 2015.

However, the company managed to cut its costs by 24 per cent and produce a positive cash flow of $31 million compared to the $67 million cash outflow the previous year.

A $46 million capital raising and extensive loan restructuring helped reduce Atlas's debt burden by $150 million.

Adelaide Brighton to pay special dividend despite slide

Building materials and concrete supplier Adelaide Brighton has rewarded investors with a special interim dividend, despite reporting a 7 per cent slide in first half profit.

The $77.1 million net profit was dragged down by property transactions.

With impact of the property deals removed, underlying profit rose 8 per cent to $75.8 million.

Sales revenue rose 1.2 per cent to $686 million, with the company reporting higher prices and strong demand in New South Wales, Queensland and South Australia more than outweighed the effect of slowing demand in Western Australia and the Northern Territory.

Adelaide Brighton chief executive Martin Brydon said the results were solid despite the company facing headwinds in several key markets.

Mr Brydon said sales in concrete would be lower next year, while premixed concrete aggregates and concrete products would be significantly higher.

"Price rises are expected in a number of products in the second half, given strong demand in several key markets," he noted.

The company gave guidance that full-year profit was expected to be in the range of $190 to $200 million, which would be marginally down on last year's result.

Adelaide Brighton paid a special 4 cent per share dividend on top of its regular 8.5 cent interim dividend.

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