OneSteel Ltd (ASX:OST) is an Australian manufacturer of steel and finished steel products and a leading metal distributor which is listed on the Australian Stock Exchange.

OST, which was spun out of BHP in October 2000, markets products used in the construction, manufacturing, housing, mining and agricultural industries.

OneSteel announced today that it will write-down $150 million of the value of its LiteSteel Technologies business due to weak residential construction activity.

The company said that the financial statements for last six months of the year will include $90 million of the write-down.

OneSteel also announced that it will sell its Piping System business for $67 million to US based McJunkin Red Man.

Together with the sale of related property investments the company expects proceeds of approximately $100 million.

Click to Receive FREE Daily Trading Recommendations!

   Written by: admin   Other posts from: admin

Orica Ltd (ASX:ORI) is a leading manufacturer of industrial & specialty chemicals, agricultural chemicals & fertilisers, commercial explosives & mining chemicals, paints & other consumer products in Australasia.

Orica has four broad business groups – Mining Services, Fertilisers, Chemicals and Consumer Products. ORI is a truly multinational company, with operations in over 40 countries. The company is listed on the Australian Stock Exchange and is part of the S&P/ASX 200.

Materials stock Orica announced today that it is resuming its Ammonium Nitrate production plant at Kooragang Island, near Newcastle.

The plant and several others have been closed since August, after thousands of litters of a dilute ammonium nitrate solution leaked from a storage facility.

Orica said re-start activities at the remaining facilities, are progressing.

Click to Receive FREE Trading Recommendations!

   Written by: admin   Other posts from: admin

Aristocrat Leisure (ASX:ALL) develops, manufactures, and distributes gaming machines and systems in Australia, New Zealand, the Americas, Asia Pacific, South Africa and Europe.

ALL is the largest gaming machine company in Australia and the world’s second-largest slot machine maker.

The company has been a basket case over the past few years amid weak consumer spending and adverse FX movements, as well as industry and operational problems.

Although ALL’s 1H11 profit was down sharply on-year, certain elements of the earnings release indicate the company is better placed to leverage off a cyclical rebound in its core markets – Australia and the US.

Gambling on weak 1H11

Aristocrat Leisure reported a 1H11 net profit of $24.9 million, which was down 49.5% from 1H10.  On a normalised basis, earnings were down 32% (1H10’s profit was inflated by a one-off gain on an asset sale). An interim dividend of 2.5 cents was declared.

The profit was impacted mostly by higher net interest costs, adverse FX movements and an 8.8% fall in revenue to $310.6 million.

Sales weakened amid tough trading conditions in North America – ALL’s biggest segment.  The division’s EBIT margin also contracted 5.6 basis points due to a higher proportion of second hand sales.

However the Australian operations performed solidly, with revenue there rising 5.5% on-year to $73.4 million.

The launch of the Viridian WS cabinets was well received by customers, driving average selling prices higher and improving margins despite competitive market conditions.

Encouraging outlook

Despite a tough half, ALL confirmed FY11 net profit guidance of 10% – 20% growth on FY10’s $77.2 million.

Although the North American division struggled, there was positive momentum towards the end of the half, with average daily fees increasing due to the rollout of new game titles.

Assuming a continuation of this trend, higher selling prices could be an important driver of earnings in the second half. Also, as legacy products are cycled out, ALL’s margins could see a turnaround due to a more favourable selling mix.

The operating environment is at least showing signs of improvement, with US consumer sentiment having shot higher in recent weeks.

Although market conditions were expected to remain challenging in Australia, Aristocrat Leisure nevertheless forecast a continuation of top line momentum, along with improved selling prices and margins.

Importantly, Aristocrat Leisure’s new product rollout makes it well placed to leverage off a cyclical rebound in both countries.

Market sentiment towards the stock has improved in recent months, and we believe there is further near-term upside to come.

ALL is a defiantly a stock to watch.

Click to Receive FREE Daily Trading Recommendations!

   Written by: admin   Other posts from: admin

BlueScope Steel Ltd (ASX:BSL) is a major steel company in Australia and New Zealand, supplying flat steel products to the building, construction, manufacturing, automotive and packaging industries.

ASX 200 listed stock BlueScope has today launched a $600 million share issue.

The new shares will be offered at $0.40, which represents a 34% discount to the most recent close.

The money will be used to repay existing debt.

Receive FREE Trading Recommendations for the next 7 Days, Click Here!

   Written by: admin   Other posts from: admin

BHP Billiton (ASX:BHP)  has a global portfolio of high-quality assets, with more than 100 operations in 25 countries.

BHP held its AGM today, with CEO Marius Kloppers outlining challenges for the company on the back of economic uncertainty and equity market volatility.

Mr Kloppers told the AGM that despite short-term challengers the long-term outlook remains unchanged.

BHP’s strategy remains to invest through the economic cycle, with a plan to invest US$80 billion over the next five years on its mining and petroleum assets.

Click to Receive FREE Trading Recommendations!

   Written by: admin   Other posts from: admin

Iluka Resources (ILU) is a major participant in the global mineral sands sector and is involved in the production, sales and marketing of titanium mineral products (rutile, ilmenite, leucoxene and synthetic rutile) and zircon.

ILU is the largest producer of zircon in the world, with an approximate market share of 34% and the second largest producer of titanium dioxide minerals with an approximate market share of 18%.

It has been one of the shares to buy over the past year, with its stock price quadrupling since the beginning of 2010.

On 13 April, ILU reported its latest quarterly production report.

The group announced a 29.4% on-year increase in mineral sands production for the March 2011 quarter.

Zircon and rutile production met or exceeded ILU’s internal expectations.  Iluka Resources gave FY11 production guidance of approximately 500,000 tonnes of zircon and 250,000 tonnes of rutile.

Revenue surged 51% from the March 2010 quarter, to $226.3 million, driven by stronger zircon demand, and a global supply shortage of titanium leading to higher selling prices.

For more FREE ASX Materials Shares News & Iluka Resources Advice, click here.

   Written by: admin   Other posts from: admin