CAL citic australia trading limited

profit guidance - strong 2004 full year results

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    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
 
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