3rd Qrtr Rslts, etc-Pt.2
Broken Hill Proprietary Co Ld
9 May 2000
Part 2
-11-
Consolidated Financial Results - Quarter
Quarter ended
March February
2000 1999 Change
Operating revenue $ Million $ Million %
Sales 5 123 4 479 +14.4
Interest revenue 12 56 -78.6
Other revenue 290 1 267 -77.1
5 425 5 802 -6.5
Operating profit including abnormal items, before
depreciation, amortisation and borrowing costs 465 1 247 -62.7
Deduct : Depreciation and amortisation 582 566 +2.8
Borrowing costs (1) 156 170 -8.2
* Operating (loss)/profit before income tax (a) (273) 511
Add/(Deduct): **Income tax benefit/(expense)
attributable to operating proft (a) 224 (108)
Operating (loss)/profit after income tas (49) 403
Add: outside equity interests in operating (loss)/
profit after income tax 3 15
Operating (loss)/profit after income tax,
attributable to members of the BHP entity (46) 418
(a) The operating profit after income tax, attributable
to members of the BHP Entity comprises:
* Operating profit before abnormal items
and income tas 865 181 +377.9
** Income tax expense attributable to
operating profit before abnormal items (310) (150)
Operating profit after income tax before
abnormal items 555 31 +1690.3
Outside equity interests in operating profit after
income tax before abnormal items 3 15
Operating profit after income tax, before
abnormal items, attributable to members of
the BHP Entity 558 46 +1113.0
* Abnormal items included in operating
profit before income tax (1 138) 330
** Abnormal income tax benefit 534 43
Abnormal items after income tax (604) 372
Operating (loss)/profit after income tax/
attributable to members of the BHP Entity (46) 418
Average A$/US$ hedge settlement rate 63 c 63 c
(1)
Excludes capitalised interest of - $52m
-12-
Revenue
Sales revenue of $5 123 million increased by $644 million or 14.4% compared with
the corresponding period. Other revenue, including interest income, decreased
by $1 021 million, reflecting lower proceeds from asset sales. Total operating
revenue decreased by $377 million to $5 425 million.
Depreciation and Amortisation
Depreciation and amortisation charges increased by $16 million to $582 million.
The charge for the quarter reflects higher depreciation following commissioning
of the Laminaria and Buffalo oil fields, and higher Petroleum production. The
corresponding period included depreciation on businesses now closed, ceased or
sold.
Borrowing costs
Borrowing costs decreased by $14 million to $156 million, mainly due to lower
funding levels partly offset by lower capitalised interest and higher interest
rates in the US and Australia.
Income Tax Expense
Excluding abnormal items, income tax expense of $310 million was $160 million
higher than for the corresponding period. The charge for the quarter
represented an effective tax rate of 35.8% (February 1999 quarter - 82.9%) which
approximates the nominal Australian tax rate of 36%.
-13-
Consolidated Financial Results - Year to date
Ten months ended 31 March
2000 1999 Change
$ Million $ Million %
Operating revenue
Sales 16 042 16 037
Interest revenue 64 167 -61.7
Other revenue 1 217 1 807 -32.7
17 323 18 011 -3.8
Operating profit including abnormal items,
before depreciation, amortisation and
borrowing costs 3 451 3 856 -10.5
Deduct : Depreciation and amortisation 1 721 1 820 -5.4
Borrowing costs (1) 566 596 -5.0
*Operating profit before income tax (a) 1 164 1 440 -19.2
Add/(Deduct): ** Income tax benefit/(expense)
attributable to operating
profit (a) 21 (563)
Operating profit after income tax 1 185 877 +35.1
Add: Outside equity interests in operating
profit after income tax 25 -
Operating profit after income tax,
attributable to members of the BHP entity 1 210 877 +38.0
(a) The operating profit after income tax,
attributable to members of the BHP Entity
comprises:
* Operating profit before abnormal items
and income tax 2 222 1 110 +100.2
** Income tax expense attributable to
operating before abnormal items (785) (605)
Operating profit after income tax before
abnormal items 1 437 505 +184.6
Outside ewquity interests in operating
profit after income tax before abnormal items 25 -
Operating profit after income tax, before
abonormal items, attributable to members of
the BHP Entity 1 462 505 +189.5
* Abnormal items included in operating
profit before income tax (1 058) 330
** Abnormal income tax benefit 806 42
Abnormal items after income tax (252) 372
Operating proft after income tax,
attributable to members of the BHP entity 1 210 877 +38.0
Average A$/US$ hedge settlement rate 64 c 62 c
(1)
Excludes capitalised interest of $18m $189m
-14-
Statutory Information
Quarter ended Year to date
March February March March
2000 1999 2000 1999
Basic earnings per share (cents)(1)
- Excluding abnormal items 31.4 2.6 82.8 29.2
- Including abnormal items (2.6) 24.0 68.5 50.7
Basic earnings per American Depositary
Share (US cents) (2)
- Excluding abnormal items 38.1 3.2 100.4 37.0
- Including abnormal items (3.2) 29.8 83.0 64.3
(1) Based on operating profit after income tax attributable to members of the
BHP Entity divided by the weighted average number of fully paid ordinary shares.
The weighted average number of shares was 1,776,451,780 (1999 - 1,739,022,648)
for the quarter and 1,765,268,662 (1999 - 1-729,865,892) for the ten months.
The weighted average number of shares for the comparative quarter and year to
date excludes 338,066,630 shares held by the Beswick Group which were brought
back and cancelled in March 1999.
(2) Each American Depositary Share (ADS) represents two fully paid ordinary
shares. Translated at the noon buying rate on Friday 31 March 2000 as certified
by the Federal Reserve Bank of New York A$1=US$0.6062 (1999 A$1=US$0.6340). For
the February 1999 quarter, the noon buying rate on Friday 26 February 1999 was
A$1=US$0.6205.
Financial Data
The financial data upon which this report has been based complies with the
requirements of the Corporations Law, with all applicable Australian Accounting
Standards and Urgent Issues Group Consensus Views, 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.
This report is made in accordance with a resolution of the Board of Directors.
R A St John
Company Secretary
The Broken Hill Proprietary
Company Limited
******
For information contact:
Media Relations: Mandy Frostick:
(BH) (61 3) 9609 4157
(AH): (61 3) 9687 6651
Mobile: (61) 0419 546 245
Email: frostick.mandy.mj@bhp.com.au
Investor Relations: Robert Porter:
(BH) (61 3) 9609 3540
Email: porter.robert.r@bhp.com.au
Pierre Hirsch:
(BH) (1 415) 774 2030
Email: hirsch.pierre.pl@bhp.com.au
-15-
Supplementary Information - Segment Results (Quarter)
Quarterly comparison - March 2000 with February 1999 (1)(2)
Quarter ended 31 March 2000
Operating Revenue (3)
$Million
Other
Sales revenue Total
1 957 220 2 177 Minerals
1 815 39 1 854 Steel
1 385 16 1 401 Petroleum
385 14 399 Services
- 9 9 Net unallocated interest
(67) 4 (63)Group and unallocated items(7)
5 123 302 5 425 BHP Group
Operating Profit
$Million
EBITDA(4) Dep'n & Borrowing
amort'n costs EBIT(5)
Minerals 639 (200) - 439
Steel 306 (132) - 174
Petroleum 766 (239) - 527
Services 6 (9) - (3)
Net unallocated interest 9 - (156) (147)
Group and unallocated items(7) (123) (2) - (125)
BHP Group 1 603 (582) (156) 865
Income Abnormal Operating
tax items profit
excluding after including
abnormal income abnormals
items tax(9) after tax
Minerals (141) (794) (496)
Steel (47) - 127
Petroleum (192) - 335
Services 1 - (2)
Net unallocated interest 35 - (112)
Group and unallocated items(7) 34 190 99
BHP Group (310) (604) (49)
Quarter ended 28 February 1999
Operating Revenue(3)
$Million
Other
Sales revenue Total
2 185 674 2 859 Minerals
1 720 53 1 773 Steel
662 62 724 Petroleum
497 506 1 003 Services
- 27 27 Net unallocated interest
(115) 1 (114)Group and unallocated items(7)
4 479 1 323 5 802 BHP Group
Operating Profit
$Million
EBITDA(4) Dep'n & Borrowing
amot'n costs(8) EBIT(5)
Minerals 473 (226) - 247
Steel 175 (119) - 56
Petroleum 333 (201) - 132
Services 36 (17) - 19
Net unallocated interest 27 - (170) (143)
Group and unallocated items(7) (127) (3) - (130)
BHP Group 917 (566) (170) 181
Income Abnormal Operating
tax items profit
excluding after including
abnormal income abnormals
items tax(9) after tax
Minerals (146) 193 294
Steel (9) - 47
Petroleum (47) - 85
Services 6 173 186
Net unallocated interest 16 - (127)
Group and unallocated items(7) 42 6 (82)
BHP Group (150) 372 403
(1) Before outside equity interest.
(2) Comparative figures have been restated to reflect the transfer of internal
currency hedging results from Minerals, Steel, and Petroleum to Group and
unallocated items. The results of internal currency hedging activities eliminate
within Group and unallocated items.
(3) Operating revenues do not add to the BHP Group figure due to intersegment
transactions.
(4) EBITDA is earnings before borrowing costs, income tax, and depreciation and
amortisation.
(5) Result for all Businesses except Net unallocated interest is EBIT (earnings
before borrowing costs and income tax).
(6) Tax benefit on March 2000 abnormal items: Minerals $344 million and Group
and unallocated items $190 million.
(7) Includes consolidation adjustments and unallocated items.
(8) Following adoption of AASB 1036: Borrowing costs, February 1999 figures
have been restated to include ancillary borrowing costs within Net unallocated
interest. These costs were previously included in Business results.
(9) Tax benefit (expense) on February 1999 abnormal items: Minerals $44 million,
Services $1 million and Group $(3) million.
MORE TO FOLLOW
QRTIIFSREVIAIII
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