Arrium takes restructuring hit

Restructuring costs to force company to post a loss for 2012/13.

Mining and steel maker Arrium will take another $480 million in charges from its restructuring efforts in its results for the 2012/13 financial year.

The restructuring costs and impairments are set to cause the company to post a loss for the year.

Just four days into his new role as chief executive, Andrew Roberts said the company's efforts to streamline its steel and recycling operations would incur further cost (see Brendon Lau's Mining for a ROE revival).

The largest come from its decision to sell its merchandising business and US recycling business.

That will lead to $360 million in charges, reflecting the value it expects to lose from the sales.

Other charges will be recognised from the rationalisation of Arrium's recycling business, plus a review of other assets that has led to impairment charges.

"We have a priority to reduce the company's overall level of debt," Mr Robert said in a statement.

"Today's announcement reflects initiatives in our Steel and Recycling businesses, with our focus on improving earnings and cash generation."

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