BHP Ann. Record Half Year

BHP Limited
8 February 2001

BHP ANNOUNCES RECORD HALF YEAR PROFIT

BHP Limited today announced a record half-year profit result of A$1,427 
million (after tax), an increase of 18 per cent or A$217 million compared 
to the corresponding six-month period ended 31 December 1999. Basic earnings 
per share were 80 cents compared to 68.8 cents for the corresponding half-year
period.

: BHP Managing Director and CEO Paul Anderson said: 'This is a solid half year
  result that clearly demonstrates our success in positioning the Company to 
  take advantage of the upward swing in a number of key commodity markets.

: 'While increased prices and positive exchange rate movements are a feature 
  of this result, we reaped the benefit of those price increases by ensuring 
  the right preparation during the aggressive clean-up of our asset base and 
  ongoing optimisation of our remaining businesses.'

Mr Anderson said the result also demonstrated the commitment of the 
management team to delivering on established goals and objectives.  'We have 
made significant progress in optimising the performance of each of our 
businesses with our return on capital now at 18 per cent compared to 10 per 
cent last financial year. 

'The quality of our portfolio has been further enhanced with most of our 
assets now SVA (shareholder value added) positive. The recent performance of 
our Western Australia HBI plant provides further confidence in the operational
performance of that facility, particularly a production train campaign length 
of more than 140 days.

'However we are closely scrutinising the operation of the Venezuela HBI 
facility as it continues to experience significant commissioning difficulties,
coupled with possible partner funding issues and a significant deterioration 
in the price received for the product due to the collapse of the US steel 
market and associated HBI market.' 

Mr Anderson said: 'Underlying cash operating costs in our copper, coal and 
iron ore businesses continue to decrease and we remain committed to achieving 
our annual average target of a two per cent real reduction in costs over the 
next three years.

'Capital and operating investment in major structural changes to the way we 
conduct our business, such as e-commerce purchasing and the establishment of 
Shared Business Services, will increase our cost base this financial year but 
will generate savings in future years.

'We have also made significant progress in implementing the main components of
our strategic framework and we continue to strengthen our management team 
capabilities with four senior executives appointed during recent months. 

'Our Portfolio Risk Management Strategy, outlined in December last year, 
applies leading-edge financial markets thinking to our risk management
approach and further illustrates our commitment to being resourceful in the way
we do business.'

A disciplined approach to capital management and debt reduction has further 
strengthened BHP's balance sheet with gearing levels now at 39 per cent and 
EBITDA interest coverage at 10.9 times. This provides the Company with greater
flexibility in terms of capital management, whether to pursue growth 
opportunities or return funds to shareholders.

Earlier today the Company announced an on-market buy back program for the 
purchase of up to 90 million of its shares (approximately five per cent of 
issued capital). The shares will be purchased opportunistically subject to 
market conditions, debt levels and the operating environment.

Mr Anderson said: 'BHP is now very much outward-looking and opportunity-
focused and we have the necessary balance sheet strength, capital management 
disciplines and portfolio development opportunities to deliver continued 
growth in shareholder value.

'We completed the spin out of OneSteel and acquisition of QCT Resources 
during the half year, committed over $3.6 billion in major capital projects 
during the last calendar year and have identified an additional $1.2 billion 
in projects for Board consideration this calendar year,' Mr Anderson said.

 'I am optimistic with regard to the remainder of this financial year. While 
 we face a slowing of economic growth in the next six months, we are well 
 positioned as we move through the business cycle. 

'We have established a solid foundation of low-cost business performance, 
prices for many of our commodities are contracted through March and the 
industry dynamics are favourable with greater balance between supply and 
demand for our key commodity markets of copper, iron-ore and coal.'


Further information can be found on our internet site: http://www.bhp.com 

Contact:
MEDIA RELATIONS 
Mandy Frostick, Manager Media Relations 
Ph: 61 3 9609 4157 Mob: [phone] 
        
INVESTOR RELATIONS
Robert Porter, Vice President Investor Relations
Ph: 61 3 9609 3540 Mob: [phone]