Iluka books loss on back of write-downs
You have no credits left. To view this article subscribe to Business News.
You have used {{points}} and have {{current_points}} remaining. Your credits will reset on {{reset_date}}.
This article is part of a special report and is available to paid Business News subscribers only.
You can purchase access to this special report or subscribe to Business News.
You can purchase access to this special report or subscribe to Business News.
This article is premium content and is available to paid Business News subscribers only.
Subscribe to Business News.
Subscribe to Business News.
Tuesday, 21 February, 2006 - 21:00
IILUKA Resources announced a net loss after tax of $85.9 million, a result largely brought about by asset write-downs and provisioning costs of $217.8 million. The profit figure is in stark contrast to 2004’s after tax net profit of $94.8 million. Western Australian operations’ EBIT declined by 10.4 per cent to $84.5 million. Excluding the one-off charges, the 2005 after tax net profit increased by 39.1 per cent to $131.9 million. The one-off charges relate to a non-cash write-downs in the carrying value of the mid west Western Australian operations of $67.3 million (after tax) and the Murray Basin assets to the tune of $61.6 million after tax. Write-downs and provisioning costs of $88.9 million after tax associated with the staged closure of the Florida/Georgia operations in the US, were also factored into the result. Notwithstanding the write-downs, the company generated strong operating cash flows of $227 million in 2005.