Iluka shares drop after profit slide, output cut
Make us a preferred source
Make us a preferred source on Google
More News: Shares in Iluka Resources fell more than 8% to $8.54 in early trading after the mineral sands miner reported a 45% slide in first-half profit amid subdued demand and said it would idle one of its Australian production lines for four months in the face of falling prices for its products.
Iluka half-year profit slides, dividend cut
The news: Mineral sands miner Iluka Resources has posted a drop in first-half profit amid subdued demand for mineral commodities.
The numbers: Net profit for the six months to 30 June fell 45% to $203.8 million, while revenue was down 10.8% to $745.4 million. This prompted the company to slash its interim dividend to 3 cents a share, compared to 25 cents a share paid a year ago.
The context: Iluka managed to raise prices during the first half, helping to keep margins relatively steady. However, it said global macroeconomic uncertainty is leading to more subdued levels of demand for mineral commodities, including Iluka’s products such as zircon and rutile.
The source: ASX announcement
