YOU ARE HERE: Annual Report 2003 > Key Reports > Consolidated Statement of Financial Performance
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Notes
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2003
$m
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2002
$m
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| Revenue from Ordinary activities |
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5,302.1
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2,488.7
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| Changes in inventories of finished goods and work in progress |
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36.1
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(7.0)
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| Raw materials and consumables used |
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(2,029.3)
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(1,519.2)
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| Employee benefits expense |
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(1,031.9)
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(373.5)
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| Depreciation and amortisation expenses |
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(270.1)
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(77.2)
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| Diminution in value of non-current assets |
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(12.6)
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(0.4)
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| External services |
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(734.7)
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(110.5)
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| Freight on external despatches |
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(410.0)
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(188.8)
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| Carrying amount of non-current assets sold |
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(4.50)
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(2.2)
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| Other expenses from ordinary activities |
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(298.7)
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181.1
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| Borrowing costs expense |
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(22.0)
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46.10
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| Shares of net profit of associates and joint venture partnership accounted for using the equity method |
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69.2
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-
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| Profit/(loss) from ordinary activities before income tax expense |
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593.6
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(17.3)
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| Income tax credit/(expense) |
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(120.9)
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21.1
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| Profit/(loss) from ordinary activities after income tax expense |
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472.7
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3.8
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| Net profit/(loss) attributable to outside equity interest |
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(21.0)
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(14.1)
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| Net profit/(loss) attributable to members of BlueScope Steel Limited |
6
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451.7
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(10.3)
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| Decrease in retained profits on adoption of revised accounting standard: AASB1028 "employee benefits" |
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(2.8)
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-
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| Net increase (decrease) in foreign currency translation reserve |
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(77.9)
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(30.4)
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| Total revenue, expenses and valuation adjustments attributable to members of BlueScope Steel Limited recognised directly in equity. |
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(80.7)
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(30.4)
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| Total changes in equity other than those resulting from transactions with owners as owners |
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371.0
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(40.7)
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Cents
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Cents
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| Basic earnings per share |
5
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57.1
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(16.3)
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The above consolidated statement of financial performance should be read in conjunction with the accompanying notes and discussion and analysis.
DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
A breakdown of revenue and profit from ordinary activities before income tax by reporting segment is set out in note 2.
Key points to note on the profit from ordinary activities before income tax expense are:
- The acquisition of BHP Steel (AIS) Pty Ltd from the BHP Billiton Group added EBIT of $369 million. This acquisition includes the Port Kembla Steelworks and New Zealand Steel operations both of which recorded a significant improvement in their financial performance primarily due to improved operating performance and higher prices.
- The North Star BHP Steel joint venture was acquired on 30 June 2002. North Star BHP Steel contributed an equity accounted profit of $69 million. This represents a significant improvement in the financial performance of this operation primarily due to increased domestic prices in the USA.
- An improvement in the overall operating performance of the Group due primarily to higher international and domestic steel prices,improved operating performance, higher despatch levels, partly offset by the net impact of a stronger AUD/USD on USD denominated revenues and costs.
- The reduction in borrowing costs from the corresponding year is due to a different capital structure arising from the separation from the BHP Billiton Group and a reduction in external debt during the period.
- Other significant items included a provision for costs associated with the required name change ($20 million) and costs associated with improving the financial position of the Australian and New Zealand defined benefit superannuation funds ($32 million).
INCOME TAX
The effective tax rate for the 12 months ended 30 June 2003 was 20.4%. This differs from the Australian tax rate of 30% primarily due to the utilisation of unbooked tax losses in New Zealand and the USA, together with the utilisation of unbooked tax losses and tax exemptions in certain Asian operations.
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