BHP Steel division loss increases in first quarter

Press, 11 October 1982, Page 29

BHP Steel division loss increases in first quarter

PA Melbourne BHP's troubled steel division suffered escalating losses in the first quarter, and prospects for an early return to the black continued to fade. In its maiden quarterlyreport. Broken Hill Pty. Company. Ltd. directors said that the steel division lost sAust9.B million in the three months to August 31. Comparative figures are not available but steel division losses for the full year to May 31 amounted to $12.6 million—which was BHP's first loss on steel for nearly 60 years. Technical problems and production shortfalls at Port Kembla and Newcastle during the quarter contributed to the loss. The directors said that the

losses in the steel division were $52.8 million if FAVA, its special brand of inflationaccounting. was added to the normal trading loss. BHP’s group profit for the quarter was sAustB6.3 million after total turnover of sAustllBo million. On a divisional basis, oil and gas contributed $68.5 million to the group's coffers, minerals earned $10.2 million, the subsidiary John Lysaght (Australia) Ltd. made $7.2 million profit, and other activities generated $ll.B million. The directors said that on an inflation-adjusted basis, the minerals division was in the red in the first quarter. Investment income was $23.8 million and extra-

ordinary profits were $4.1 million. Tax took $B4 million and interest charges totalled $25.2 million.

Although the quarterly report—BHP's first—will give shareholders and analysts a closer watch on the performance of Australia’s largest company, they will have to wait until 1983 before BHP provides comparative figures.

A BHP spokesman said that the board received monthly profit and divisional reports', and it was not possible to consolidate these results on a quarterly basis for 1981.

The directors again emphasised that quarterly results should not be used as an indication of group trading for a full year.