CITIC Australia Trading Limited ABN 84 092 595 741 ASX Release – 2005-02-08 – Profit guidance FY04 ASX & Media Release 8 February 2005 Profit guidance – Strong 2004 full year result Profit guidance The Directors of CITIC Australia Trading Limited (CAL) are pleased to advise that CAL has delivered another year of profit growth in 2004, with full year profits up approximately 10%. Based upon preliminary, unaudited figures, CAL’s net profit after tax for the year ended 31 December 2004 is expected to be approximately $5.7 million (2003: $5.2 million), on sales revenue of approximately $609 million (2003: $452 million). The first half result was very strong, as previously advised, followed by a respectable performance in the second half. This was despite the significant volatility in commodity prices and demand (especially for alumina) following the Chinese Government’s announcement in late April 2004 of measures to slow the overheated economy. The increase of approximately 34% in sales reflects not only higher commodity prices during 2004, but also significant iron ore sales of approximately $116 million. CAL’s team is working to develop iron ore into a new regular trading line. 2005 The significant fluctuations in commodity prices during mid-2004 again illustrates clearly that international commodity trading is a highly volatile business activity. This makes predicting CAL’s revenue and earnings difficult. Accordingly, CAL’s board considers it prudent not to provide detailed profit forecasts. However, CAL can advise that exports of alumina and iron ore have started the year well, underpinning a strong start to 2005. In addition, CAL has entered into an advance purchase agreement with a Chinese aluminium smelter, whereby it has progressively prepaid for over 20,000 tonnes of aluminium ingots for delivery during 2005, commencing in March. This helps further diversify export trading lines and reduce relative reliance upon alumina. Imports, particularly tyres and wheels, are seeing signs of increasing competition, although it is too early to assess the impact (if any) on future results. Final 2004 Profit & Dividend The final, audited financial report for the year ended 31 December 2004 is expected to be released in late February 2005, together with the announcement of the 2004 final dividend. For further information contact: Mr Yuheng Wu Mr Michael Arter Managing Director Director & Company Secretary Tel: 61 3 9614 8000 Tel: 61 3 9614 8000 Or visit: www.citictrading.com.au
CAL Price at posting:
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