BHP Billiton Announces Third Quarter Group Turnover of US$4.3 Billion, EBIT of US$761 Million and Profit of US$406 Million.Business Editors MELBOURNE, Australia--(BUSINESS WIRE)--May 1, 2002 The BHP Billiton BHP Billiton is the world's largest mining company.[1] Its origin is in the 2001 merger of Australia's Broken Hill Proprietary Company (BHP) and the UK's Billiton, which has a South African background. The result is a dual-listed company. Group (NYSE NYSE See: New York Stock Exchange :BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. ) today announced financial results for the quarter ended 31 March 2002. Group turnover totalled US$4.3 billion compared to Group turnover of $US4.7 billion for the corresponding period, a decrease of approximately US$400 million or 8 per cent. Earnings Before Interest and Tax (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) was US$761 million for the third quarter, a decrease of US$209 million or 22 per cent compared to the corresponding period last year. Attributable profit was US$406 million for the quarter, a decrease of US$198 million or 33 per cent compared to the quarter ended March 2001. The quarter ended March 2001 included an exceptional item, which decreased profit for the period to US$194 million. As a result, after exceptional items, the March 2002 profit rose US$212 million or 109 per cent compared to the corresponding quarter last year. BHP Billiton CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Managing Director Paul Anderson said: "This is a sound result in the face of difficult market conditions. Earnings in the Base Metals business were impacted by our voluntary decision to reduce production, which was precipitated by our desire to maximise the long-term value of that business. Although petroleum prices have recently recovered, the March quarter realisations were significantly below the corresponding period. The Steel business continued to be impacted by difficult international market conditions. Despite the tough environment the Aluminium, Carbon Steel, Energy Coal and Diamonds businesses generated EBIT results that equalled or exceed the corresponding period." EBIT for the March 2002 quarter rose US$31 million or 4 per cent compared to the quarter ended 31 December 2001. Mr. Anderson Mr. Anderson can refer to several fictional characters:
Compared with the corresponding quarter last year, lower commodity prices for base metals, crude oil, aluminium, steel and stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. materials impacted turnover by approximately US$260 million. Stronger prices for metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. coal and energy coal partially offset the downward price movements and positively impacted turnover by US$80 million for the quarter period. After adjustment for price-linked costs, the net impact on EBIT of price changes was approximately US$125 million negative. Favourable foreign currency movements of US$75 million in part offset this overall net decline in prices. Basic earnings per share were US6.7 cents for the quarter ended 31 March 2002, compared with the corresponding period of US10.1 cents before exceptional items and US3.2 cents after exceptional items. Growth During the quarter, BHP Billiton approved the development of the Zamzama gas field in Pakistan (US$40m) and committed to its first ultra-deepwater development in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with the sanctioning of the Mad Dog oil and gas field (US$335m). An additional investment in two pipeline systems that will transport hydrocarbons from the Mad Dog and Atlantis fields (US$100m) was sanctioned to maximise the potential of the Group's holdings in the Atwater Foldbelt. In addition, BHP Billiton approved the expansion of the Hillside (South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. ) aluminium smelter (US$450m) to increase production capacity by 25 per cent and further lower the unit costs of this world-class asset. The Group also increased its interest in the Cerrejon Zona Norte Zona Norte (North Zone) is a red light district located in Tijuana, Mexico. It is known for prostitution and illicit drug sales. Due to its proximity to San Diego, California, it is frequented by Americans. (CZN) energy coal mine in Colombia by acquiring International Colombia Resources Corporation (Intercor), in conjunction with its partners. More recently, BHP Billiton announced a joint venture with major customer POSCO POSCO Pohang Iron & Steel Co, Ltd and approved the development of a new iron ore mine at Mining Area C and an expansion of its Pt Hedland port and rail facilities (US$514m), both in the Pilbara region of Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. . BHP Billiton Deputy CEO Brian Gilbertson said: "Since January this year, we have committed over US$1.4 billion to new growth projects. Our project `pipeline' remains a significant value driver for the Group." Portfolio Management During the quarter, BHP Billiton announced the planned closure of the Tower metallurgical coal colliery in New South Wales New South Wales, state (1991 pop. 5,164,549), 309,443 sq mi (801,457 sq km), SE Australia. It is bounded on the E by the Pacific Ocean. Sydney is the capital. The other principal urban centers are Newcastle, Wagga Wagga, Lismore, Wollongong, and Broken Hill. (Australia). The withdrawal from the Ok Tedi copper mining operations in Papua New Guinea Papua New Guinea (păp`  ə, –y was completed with the transfer of its 52 per cent equity holding
to a sustainable development Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. The linkage between environment and development was globally recognized in 1980, when the International Union fund that will operate for the benefit of
the Papua New Guinean people.The demerger demerger n (Comm) → Abspaltung f, Demerger m of BHP Steel remains on schedule. The scheme document and prospectus for the demerger is due for release in May with Extraordinary Shareholders Meetings planned for late June to seek approval for the transaction from BHP Billiton Limited and Plc shareholders. Boodarie(TM) Iron Force majeure [French, A superior or irresistible power.] An event that is a result of the elements of nature, as opposed to one caused by human behavior. The term force majeure on sales contracts and some supply contracts at the Boodarie(TM) Iron plant in north Western Australia remains in place pending finalisation of plant rectification works underway. Outlook Mr Gilbertson said: "Although there have been some signs of a modest improvement in the global economic environment, concerns remain about the strength and sustainability of the recovery. Industry stock levels for a number of our major commodities remain high and we see little evidence of an increase in demand by the ultimate customers of many of our products. This situation will limit price increases for those commodities, at least in the short term, and combined with the weakening of the US dollar, will continue to impact on our earnings. "In these challenging conditions, our cash generation remains strong thanks to the quality of our assets and our well-diversified portfolio Well-diversified portfolio A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been . EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the quarter was US$1.2 billion (compared to US$1.4 billion in the corresponding period last year) and US$3.7 billion for the year to date (compared to US$4.1 billion). Dividend The BHP Billiton Directors announced a final dividend of 6.5 US cents per fully paid ordinary share to be paid on 3 July 2002 by BHP Billiton Limited and BHP Billiton Plc. The BHP Billiton Limited dividend is fully franked for Australian taxation purposes. The record date for both BHP Billiton Limited and BHP Billiton Plc shareholders will be 7 June 2002. As the BHP Billiton Group generates cash flows primarily in US dollars, dividends are determined and declared in US dollars. The rates of exchange applicable two business days before the declaration date are used for conversion. For the July 2002 dividend, conversion from US currency was at exchange rates applicable on 29 April 2002. Further details are available in the full BHP Billiton Third Quarter Results Release. The financial information included in this release is prepared in accordance with UK generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). The third quarter results are discussed in more detail in the attachment, the BHP Billiton Third Quarter Report 31 March 2002. The attachment is also prepared in accordance with UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles , except for information set out on page 32, which contains financial results prepared in accordance with Australian GAAP and presented in Australian dollars. Further news and information can be found on our Internet site: www.bhpbilliton.com BHP BILLITON RESULTS FOR THE QUARTER ENDED 31 MARCH 2002 HIGHLIGHTS
-- Sound quarterly result in the face of difficult market conditions with
strong cash generation as evidenced by EBITDA of US$1.2 billion.
-- Turnover US$4.3 billion, EBITDA US$1.2 billion and attributable profit
US$406 million.
-- Financial year to date turnover US$13.2 billion, EBITDA US$3.7 billion and
attributable profit US$1.6 billion.
-- Final dividend of 6.5 US cents to be paid on 3 July 2002.
-- Commitment to growth - US$2.4 billion in new growth projects sanctioned
since the merger.
-- Little evidence of increases in demand by the ultimate customers of many of
our products.
-- BHP Steel demerger on track for completion about the middle of this year.
Quarter ended Nine months ended
31 March 31 March
2002 2001 2002 2001
US$M US$M US$M US$M
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Group turnover (1) 4 282 4 674 13 176 14 070
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EBITDA (1)(2)
- excluding exceptional items 1 184 1 397 3 698 4 077
- including exceptional items 1 184 877 3 698 3 557
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EBIT (1)(3)
- excluding exceptional items 761 970 2 412 2 840
- including exceptional items 761 450 2 412 2 320
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Attributable profit
- excluding exceptional items 406 604 1 604 1 762
- including exceptional items 406 194 1 604 1 352
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Basic earnings per share (US cents)
- excluding exceptional items 6.7 10.1 26.6 29.7
- including exceptional items 6.7 3.2 26.6 22.8
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EBITDA interest coverage (times)(4)
- excluding exceptional items 15.6 8.6 10.8 8.9
- including exceptional items 15.6 5.4 10.8 7.7
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(1) Including the group's share of joint ventures and associates.
(2) EBITDA is profit before net interest, taxation, and
depreciation and amortisation.
(3) EBIT is profit before net interest and taxation.
(4) For this purpose, net interest includes capitalised interest
and excludes the effect of discounting on provisions and
exchange differences arising from net debt.
The above financial results are prepared in accordance with UK
generally accepted accounting principles (GAAP).
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