Broken Hill Proprietary 1994/95 Third Quarter Report.SAN FRANCISCO--(BUSINESS WIRE)--March 31, 1995--Directors today announced an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. after income tax attributable to BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. shareholders of $322 million for the quarter ended 28 February 1995, an increase of $38 million or 13.4% when compared to the profit for the corresponding quarter in 1994 of $284 million. There were no abnormal items in either quarter. Earnings per share for the quarter increased by 8.0% to 22.9 cents; the 1994 comparative earnings per share were 21.2 cents. Operating profit for the nine months of the current financial year at $1,392 million was 50.6% ahead of the profit for the corresponding period of the 1994 year. Excluding the abnormal item of $234 million reported last quarter, operating profit for the nine months of the current financial year at $1,158 million increased 25.3%. Earnings per share for the nine months were 44.0% higher at 99.5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Excluding the abnormal item, earnings per share for the nine months were 19.7% higher at 82.7 cents per share. Consolidated Group Results Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. and other revenues of $4,184 million increased marginally compared with the previous corresponding quarter. The major factors affecting revenues were: - the higher average Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents exchange rate during the period had the effect of reducing the A$ value of US$ denominated sales revenues in all businesses; - in Minerals, lower shipments of copper and lower US$ prices for coal and iron ore were partly offset by higher copper prices and higher shipments of iron ore; - in Steel, increased Australian domestic and export volumes and higher export prices combined to increase revenues; - in Petroleum, product sales revenues were relatively constant, however total operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. declined due to higher asset sales in the corresponding quarter last year; and - in Service Companies, increased revenues were reported for Transport and Information Technology. Depreciation and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. charges increased by $33 million to $412 million. Minerals' charge increased due to accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. on certain assets at Mt Newman, partly offset by the favourable translation effect of the higher A$/US$ exchange rate. Steel's charge increased mainly due to the commissioning of new plant. For Petroleum the charge was higher mainly as a result of increased production from newer fields, partly offset by lower production from mature fields. Interest expense at $105 million was 4.5% lower than for the comparable period last year. The effect of higher interest rates was more than offset by the lower average debt level and an increase in interest capitalised. Income tax expense attributable to operating profit was $195 million and represented an effective tax rate of 33.3%. This was marginally higher than the nominal Australian tax rate of 33% due mainly to non-deductible accounting depreciation and amortisation, non-deductible overseas exploration expenditure and higher foreign taxes on some overseas income. Compared with 1994, income tax expense was $22 million higher reflecting the increase in pre-tax profits. Business Group Results (after income tax) Quarter ended ------------- 28 February ----------- 1995 1994 Change ---- ---- ------ $Million $Million % -------- -------- - Minerals 228 209 +9.1 Steel 114 104 +9.6 Petroleum 122 115 +6.1 Service Companies 20 13 +53.8 Net unallocated interest (52) (61) Corporate and unallocated (41) (39) items -------- -------- Operating profit before outside 391 341 +14.7 equity interests Outside equity interests (69) (57) -------- -------- Operating profit attributable to members of the BHP Entity 322 284 +13.4 ======== ======== Minerals Minerals' profit for the quarter was $228 million, 9.1% above the profit for the same quarter last year. Higher copper prices had a significant impact on the result. Copper traded on the London Metals Exchange at an average of US$1.35 per pound for the quarter, US$0.53 cents higher than in the corresponding quarter last year. However, lower copper shipments, increased operating costs operating costs npl → gastos mpl operacionales and an unfavourable movement in the A$/US$ exchange rate partly offset the benefit of increased copper prices. Higher shipments of iron ore also contributed to the higher profit. These gains were partly offset by lower US$ prices for coal and iron ore and a higher depreciation charge due to accelerated depreciation of certain assets. Exploration spending was higher reflecting the continuing commitment to increase our global portfolio of reserves. Significant events were: - work commenced on the expansion of iron ore pellet pel·let n. 1. A small pill; a pilule. 2. A small rod-shaped or ovoid mass, as of compressed steroid hormones, intended for subcutaneous implantation in body tissues to provide timed release over an extended period of time. production from 5.6 million tonnes to 11.0 million tonnes per annum Per annum Yearly. at the 49% owned Samarco operation (Brazil); and - construction started on the Beenup (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. ) titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. minerals project; the project is scheduled to produce 600,000 tonnes of ilmenite ilmenite (ĭl`mĕnīt), black mineral, iron titanium oxide, FeTiO3, crystallizing in the hexagonal system. It is sometimes found as tabular hexagonal crystals but occurs more commonly as small grains in igneous and metamorphic and zircon zircon Silicate mineral, zirconium silicate, ZrSiO4, the principal source of zirconium. Zircon is widespread as an accessory mineral in acid igneous rocks; it also occurs in metamorphic rocks and, fairly often, in detrital deposits. per annum. Other major activities included the near completion of the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. of the Cannington (Queensland) silver, lead and zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. project and further progress at the Northwest Territories Northwest Territories, territory (2001 pop. 37,360), 532,643 sq mi (1,379,028 sq km), NW Canada. The Northwest Territories lie W of Nunavut, N of lat. 60°N, and E of Yukon. (Canada) diamonds project with additional sampling undertaken and the commencement of the Canadian Government's environmental review. Steel Steel's profit for the quarter was $114 million, 9.6% above the corresponding quarter last year. Raw steel production of 2.076 million tonnes was 4% higher than last year, mainly due to consistently high output from all steelmaking centres. Most of the Australian manufacturing Divisions and New Zealand Steel New Zealand Steel is a large steel mill located at Glenbrook, New Zealand. reported improved profits this quarter. Steel despatches DESPATCHES. Official communications of official Persons, on the affairs of government. 2. In general, the bearer of despatches is entitled to all the facilities that can be given him, in his own country, or in a neutral state; but a neutral cannot, in general, from Australian operations were at a record level for a February quarter. Australian domestic steel despatches of 0.951 million tonnes were 12% above the corresponding quarter last year; consistent with seasonal patterns, these despatches were 18% below the November 1994 quarter. Export steel despatches from Australia of 0.737 million tonnes were higher than for the first two quarters and 3% above the corresponding quarter last year. Export prices for most products were higher; the effect of the higher valued A$ in relation to the US$ was partially negated by hedging. The Collieries Division result was lower due to increased costs arising from operational difficulties at three mines and lower export coal prices while the result of New Zealand Steel was lower due to operational difficulties. Employment costs also increased in line with the two year Steel Industry Wages Agreement which was introduced during the quarter. Petroleum Petroleum's profit of $122 million was 6.1% higher than for the same quarter last year. The result reflects the impact of increased US$ oil prices partly offset by increased exploration expense. Oil and condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. production declined in Bass Strait Bass Strait (băs), channel, 80 to 150 mi (129–241 km) wide, between Tasmania and Victoria, SE Australia, connecting the Indian Ocean and Tasman Sea; Port Phillip Bay and Melbourne are on the northwest coast. (Australia) and Kutubu (PNG (Portable Network Graphics) A bitmapped graphics file format endorsed by the World Wide Web Consortium. It is expected to eventually replace the GIF format, because there are lingering legal problems with GIFs. ), but this was partly offset by production increases from Bruce (UK), Griffin, North West Shelf and Timor Sea Timor Sea An arm of the Indian Ocean between Timor and Australia. Noun 1. Timor Sea - an arm of the eastern Indian Ocean between Timor and northern Australia (Australia) together with the commencement of production from Dai Hung (Vietnam) in October 1994. Natural gas production was higher than for the same period last year and reflects the commencement of production in the current financial year from the Johnston field (UK), block K4b/5a (Netherlands) and the Griffin field (Australia), together with gas production from Goodwyn A (Australia) which commenced in the current quarter. World wide exploration and appraisal drilling during the current quarter yielded encouraging results in Australia and the Netherlands. Exploration concessions were obtained in Pakistan. Service Companies The profit from Service Companies of $20 million was $7 million higher than for the corresponding quarter last year. The improved result was attributable to better performances of Transport, Insurance and Engineering. Corporate and Unallocated Items Corporate and Unallocated Items recorded a loss of $41 million which compares with a loss of $39 million for the comparative quarter. The major elements of the result were Corporate overheads and Treasury operations. Whilst favourable results were achieved on external foreign currency hedging, losses were incurred by Treasury on intra group transactions. The Power Group, through various joint venture interests, is progressing several opportunities for integrated projects in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Asia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . Outside Equity Interests Outside equity interests' share of operating profit after income tax increased due mainly to higher profits from Ok Tedi Mining Limited Ok Tedi Mining Limited is a Company from Papua New Guinea that administers the Ok Tedi Mine in the northern part of the Western Province. Its main office is located in a building known as the White House in Tabubil. . Consolidated Group Results Quarter ended 9 months ended ------------- -------------- February February -------- -------- 1995 1994 Change 1995 1994 Change ---- ---- ------ ---- ---- ------ $Million $Million % $Million $Million % -------- -------- - -------- -------- - Operating revenue Sales 4 089 3 947 + 3.6 12 785 12 066 + 6.0 Interest revenue 32 20 +60.0 76 59 +28.8 Other revenue 63 118 -46.6 537 303 +77.2 -------- -------- -------- -------- 4 184 4 085 + 2.4 13 398 12 428 + 7.8 -------- -------- -------- -------- Operating profit before depreciation, amortisation and interest expense 1 103 1 003 +10.0 3 719 3 017 +23.3 Deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. : Depreciation and amortisation 412 379 +8.7 1 183 1 064 +11.2 Interest expense (b) 105 110 -4.5 287 346 -17.1 -------- -------- -------- -------- *Operating profit before income tax (a) 586 514 +14.0 2 249 1 607 +40.0 Deduct: **Income tax expense attributable to operating profit(a) 195 173 +12.7 654 550 +18.9 -------- -------- -------- -------- Operating profit after income tax 391 341 +14.7 1 595 1 057 +50.9 Deduct: Outside equity interests in operating profit after income tax 69 57 +21.1 203 133 +52.6 -------- -------- -------- -------- Operating profit after income tax, attributable to members of the BHP Entity 322 284 +13.4 1 392 924 +50.6 ======== ======== ======== ======== (a) Operating profit and income tax comprise: * Operating profit before abnormal item and income tax 2 025 1 607 +26.0 **Income tax expense attributable to operating profit before abnormal item 664 550 -------- -------- Operating profit before abnormal item 1 361 1 057 +28.8 *Abnormal item before income tax 224 - **Abnormal income tax benefit 10 - -------- -------- Abnormal item after income tax 234 - -------- -------- Operating profit after income tax 1 595 1 057 +50.9 ======== ======== (b) Excludes capitalised 34 25 109 86 interest of Segment Results Operating profit after income tax --------------------------------- before outside equity interests ------------------------------- Quarter ended 9 months ------------- -------- February February (1) -------- -------- $ Million $ Million --------- --------- 1995 1994 1995 1994 Industry segments -------- -------- -------- -------- Minerals 228 209 714 469 Steel 114 104 458 392 Petroleum 122 115 618 375 Service Companies 20 13 82 91 Net unallocated interest (52) (61) (152) (190) Corporate and unallocated items(2) (41) (39) (125) (80) -------- -------- -------- -------- BHP Group 391 341 1 595 1 057 ========= ======== ======== ======== Operating revenue (3) ----------------- Quarter ended 9 months ------------- -------- February February -------- -------- $ Million $ Million --------- --------- 1995 1994 1995 1994 Industry segments -------- -------- -------- -------- Minerals 1 406 1 445 4 336 3 820 Steel 1 683 1 540 5 345 5 000 Petroleum 1 004 1 052 3 426 3 369 Service Companies 462 400 1 546 1 306 Net unallocated interest - income 32 20 75 59 Corporate and unallocated items(2) (6) (22) (40) (12) BHP Group 4 184 4 085 13 398 12 428 ======== ======== ======== ======== (1)The 1995 operating profit for Petroleum includes an abnormal profit of $234 million arising from the sale of the Group's investment in Woodside Petroleum Woodside Petroleum Limited is an Australian petroleum exploration and production company. It is a public company listed on the Australian Stock Exchange and has its headquarters in Perth, Western Australia. Ltd. (2)Includes consolidation adjustments. (3)Operating revenues do not add to the BHP Group figure due to intersegment transactions. Financial Information Quarter ended 9 months ended ------------- -------------- February February -------- -------- Change Change ------ ------ 1995 1994 % 1995 1994 % ---- ---- - ---- ---- - Basic earnings per share (a) Including abnormal items 22.9 c 21.2 c +8.0 99.5 c 69.1 c +44.0 Excluding abnormal items 22.9 c 21.2 c +8.0 82.7 c 69.1 c +19.7 Earnings per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (b) Including abnormal items US$ 0.70 US$ 0.59 US$2.99 US$1.88 Excluding abnormal items US$ 0.70 US$ 0.59 US$2.48 US$1.88 Average A$/US$ hedge settlement rate 76 c 69 c 75 c 68 c (a) Based on operating profit after income tax attributable to members of BHP divided by the weighted average number of $1.00 fully paid shares. The weighted average number of shares for the quarter (1,409,079,916) excludes 307,333,300 BHP shares held by Beswick (1994 - 322,573,300). Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is not reported as it is not materially different from basic earnings per share. (b) Each American Depositary Share (ADS) represents four ordinary $1.00 shares. Earnings per ADS have been translated to US dollars using the average A$/US$ hedge settlement rate noted above. The financial data upon which this report has been based complies with the requirements of the Corporations Law, with all applicable accounting standards and gives a true and fair view of the matters disclosed. The results are unaudited. The Company has a formally constituted Audit Committee of the Board of Directors. Details of equity accounting are not included in this report because of the unavailability of quarterly published information. Shareholder Benefits Directors are pleased to announce the following - (1) A 1 for 10 bonus issue on holdings registered at 19 May 1995. These bonus shares will qualify for the dividend also announced today. (2) A dividend at the rate of 26 cents per share payable on 7 June 1995 and fully franked; an increase of 3 cents per share on the dividend in the corresponding period. This dividend of 26 cents per share, together with the dividend paid in November 1994, represents an effective increase of 19.5% on the previous year's dividend. (1) Bonus Issue ----------- A 1 for 10 bonus issue of shares will be made to those shareholders registered at close of business on 19 May 1995. The bonus issue will be made from amounts standing to the credit of the Share Premium Account and will therefore, under current Australian Tax Law, be free of income tax in the hands of Australian resident shareholders. The bonus shares will qualify for the June 1995 dividend (see below). (2) Dividend -------- A dividend will be paid (or equivalent bonus shares allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. under the Company's Bonus Share Plan) on 7 June 1995 at the rate of 26 cents per $1.00 fully paid ordinary share. The dividend will be fully franked with approximately 16.6% franked at 39 cents in the dollar and 83.4% franked at 33 cents in the dollar. Further details of the franking apportionment The process by which legislative seats are distributed among units entitled to representation; determination of the number of representatives that a state, county, or other subdivision may send to a legislative body. The U.S. will be provided after the books' closing date and prior to the payment of the dividend. The dividend will also be paid on shares allotted under the bonus issue announced today. The dividend will be paid to registered holders following the registration of transfers received up to 5.00pm on Friday 19 May 1995, the books' closing date. Shareholders who prior to 31 March 1995 elected to participate in the Company's Bonus Share Plan and/or Dividend Investment Plan will receive shares in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with those Plans. American Depositary Shares (ADS) each represent four ordinary $1.00 shares and receive dividends accordingly. The record date for ADS's is 18 May 1995. Transfers will be accepted for registration at the Company's share registers and the US Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. at the following addresses: Australia 600 Bourke Street Melbourne 3000 UK Bristol Securities Services - Registrars The Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba plc Caxton House, Redcliffe Way Bristol BS99 7NH USA New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Morgan Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Trust Co of New York 60 Wall Street New York NY 10260-0060 Secretary The Broken Hill Proprietary Company Limited CONTACT: Broken Hill Proprietary Pierre Hirsch, 415/774-2030 |
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