Arrium Rises Most in 10 Months on Earnings Outlook: Sydney Mover
Stock Chart for Arrium Ltd (ARI)
Arrium Ltd. (ARI), the Australian steelmaker and iron ore producer, rose the most in 10 months in Sydney trading after it forecast earnings will rise in the next year on strong demand in China and a declining local currency.
Arrium rose 15 percent to A$1.145 at 12:10 a.m., the most since Oct. 1, 2012. Australia’s benchmark S&P/ASX 200 index declined 0.4 percent.
The Sydney-based company expects earnings from its steel unit to improve as it benefits from a decline in the Australian dollar, it said today in a statement. The currency has fallen 12 percent this year. Mining unit earnings are forecast to rise after the company completed expansion work to double iron ore sales volumes to 12 million tons a year, and on strong demand for the steel-making ingredient in China, Arrium said.
“If you look across the whole portfolio, it is growing quite well,” said Evan Lucas, a Melbourne-based market strategist at IG Markets Ltd.
Arrium had a net loss of A$695 million ($631 million) in the 12 months to June 30, from net income of A$58 million a year earlier, after it booked A$961 million in impairment and restructuring charges, according to the statement.
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