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LONDON (Alliance News) - South32 Ltd on Monday said its pretax profit fell in the financial year to the end of June and said it will seek to cut its costs substantially over the next three years.
The company, which was spun-off from mining giant BHP Billiton PLC earlier this year, said its pro-forma pretax profit for the year to the end of June was USD28.0 million, down from USD64 million a year earlier, as pro-forma revenue fell to USD7.74 billion from USD8.34 billion a year earlier.
The group's profit was driven lower by booking USD594.0 million in impairment charges in the half, which offset gains made due to the strength of the dollar.
In addition to the fall in profit, the company said it is planning to reduce its controllable costs by USD350 million per year by the end of 2018, along with plans to cut its sustaining capital expenditure to USD650 million, down 9%, by the end of 2016.
"The implementation of our regional operating model and broader cost saving initiatives are already delivering strong results. Over the next three years, we are seeking to reduce controllable costs by at least US$350M per annum," said Graham Kerr, South32's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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