Miner and supplier of steel making raw materials OneSteel Ltd
(ASX:OST) has posted a six per cent fall in net profit for the year to June 30.
Net profit after tax for the 12 months to June 30 came to $230 million, down from $245 million recorded the year before.
Underlying net profit after tax of $215 million was down 32 per cent from the $315 million reported the year before, but slightly higher than the $200 million forecast by the company in April.
CEO Geoff Plummer says results for the last three quarters were affected by a substantial deterioration in both domestic and international market conditions due to the effects of the global financial crisis.
The company says international prices for steel and steelmaking inputs are expected to remain volatile.
However, prices are expected to improve over the longer term though they are not likely to reach the highs of 2008.
OneSteel did not provide earnings guidance for fiscal 2010 due to a high level of uncertainty around the movement and impact of foreign exchange rates, prices and the rate of economic recovery.
OneSteel declared a final dividend of 4 cents a share. Looking at the past five years OneSteel’s best net profit so far has been in 2008.
Building products company James Hardie Industries N.V. (ASX:JHX) has reported a loss for the first quarter due to weakness in housing construction in the U.S. and general economic conditions.
Net loss for the three months to June 30 of US$77.9 million compared to a profit of US$1.4 million for the same period a year ago.
The company says the result included asbestos liabilities, ASIC expenses and tax adjustments.
Excluding these the company posted a net operating profit of US$41.6 million.
CEO Louis Gries says that while the U.S. residential construction market appears to be nearing the bottom, it remains too early to ascertain the timing, rate or extent of any potential recovery.
James Hardie says it expects full year earnings ending March 30 2010 excluding asbestos, ASIC expenses and costs of relocating its head office, to be at the top end of analysts forecasts of between US$39 million to US$67 million. James Hardie Industries posted a profit in 2009 after a loss the year before.
Engineering and property services company United Group Ltd (ASX:UGL) has posted an 8.7 per cent rise in net profit for the financial year to June 30 of $142.5 million.
The company says the result is its ninth consecutive record full year result, with revenue jumping 36.7 per cent to $4.8 billion.
United says its order book as at June 30 2009 is near record levels at $8.2 billion.
CEO Richard Leupen says there is scope for the company to expand through acquisition, saying that UGL sees growth opportunities in existing markets such as rail transport, outsourcing of property services, liquefied natural gas and clean power and water projects.
United Group says it expects revenue for the 2010 financial year to be around $4.5 billion and adjusted net profit after tax of around $150 million.
UGL declared a final dividend of 35 cents a share. United Group’s profits have been increasing year on year for the past four years.
