Arrium falls further into the red

Published: 10:09:42 AM, Mon 18 February 2013 UTC

Steel and mining group Arrium has fallen further into the red as the high Australian dollar and weak construction markets cause a massive writedown on its assets.

Arrium made a net loss of $447.2 million in the six months to December 31, down from a $70.7 million loss in the previous corresponding period.

The result includes a $474 million impairment on its assets, which was announced to the market earlier in February.

Excluding the impairment, Arrium's underlying profit in the six months to December was $51 million, down from $77 million in the previous corresponding period.

Lower iron ore prices in Arrium's mining business was the main factor in the lower underlying profit, the company said on Tuesday.

No specific guidance was given for the full year, but Arrium said it expected the majority of its full year net profit to be made in the second half as iron ore prices improve.

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