Arrium Limited
(ASX:ARI) will be hit by $474 million in impairment costs from its manufacturing and distribution segments.
The Arrium board has opted to write down goodwill in manufacturing due to the impact of a weak Australian dollar and a difficult construction market.
Impairments for the manufacturing segment total $431 million, while $43 million will be written down from the distribution segment.
Arrium says the write down in distribution relates to the carrying value of the company’s mid-market ARC steel reinforcing brand.
The mining and materials group said the impairments will have no impact on operations and are non-cash in nature.Arrium generated a net profit of $63.6 million in the 2012 financial year.
