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Arrium flags more job cuts

Date

Brian Robins

Arrium boss Geoff Plummer has flagged further job cuts at the group's steel division as it struggles to stem red ink and improve operating efficiencies.

Over the past four years, more than 2000 jobs had been cut, with more to come.

"We've taken [out] more than 4000 people over four years," Mr Plummer told analysts when discussing the group's December half earnings. "We have to keep making [the steel division] sharper and more efficient ... Labour reductions will continue."

In the December half, Arrium lost $447 million after booking a $474 million write-down in the book value primarily of its steel tube unit, which is up for sale.

In the steel manufacturing, distribution and recycling businesses, Arrium posted a profit of $35 million at the earnings before interest, tax, depreciation and amortisation level, on revenue of $2.8 billion.

In the half, the total employee count of these three business units fell by 633 year on year, with more cuts anticipated.

Mr Plummer said Arrium will pursue the sale of "non-integrated businesses" while refusing to clarify which businesses could be sold.

It has confirmed the Australian Tube Mills unit is for sale, with analysts speculating other businesses such as its US recycling unit may also be sold.

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