ILUKA Resources has announced an after tax profit of $38 million for the first half of 2004, an increase of 3.5 per cent compared with the corresponding 2003 half-year result of $36.7 million.
The company has also announced an interim dividend of 10 cents franked to 8.7 cents, down slightly on the 10 cents franked to 9.2 cents of the previous period. That will be paid on September 20.
Iluka managing director Mike Folwell said Iluka’s pre-tax profit to $62.2 million in the first half, was a $22.2 million rise on the corresponding period last year.
However, Mr Folwell lamented the $20.7 million increase in tax expenses that came with that profit rise.
"During the first half the company benefited from higher sales volumes and prices, further cost reductions and efficiency improvements from the ongoing business improvement program, the achievement of a significant profit turnaround in the US operations and higher profits from foreign currency hedging," he said.
Mr Folwell said those gains were offset by the impact of the Australian dollar’s rise which hit US dollar denominated sales, a book loss on the exchange revaluation of un-hedged US dollar borrowings and a planned period of low-grade, high-cost remnant mining at the company’s Capel operations.
The company’s cash flow increased by $72.5 million to $151.3 million on the corresponding period.
On a regional basis mineral sands revenues from its WA operations rose by $16.8 million to $280 million, US sales revenues jumped 15 per cent to $58.1 million and CRL’s sales revenues increased $8.9 million to $37.6 million during the period.