Arrium plunges to a $1.9b loss

Arrium has plunged into the red with a $1.9b full year loss after being hit by massive impairment charges and restructuring costs.

Mining and materials group Arrium has slumped to a $1.9 billion loss following a plunge in iron ore prices.

The South Australian-based miner's loss for the year to June 30 compared to a $205.4 million net profit in 2013/14, after the company was hit by $1.799 billion of asset impairments and restructuring costs.

Sales revenue fell to $5.9 billion, from $6.5 billion, while Arrium's underlying net loss was $6.7 million, down from an underlying net profit of $296 million, following a 40 per cent fall in iron ore prices.

Arrium said its first half earnings for 2015/16 were expected to be hit by falling Asian steel prices, but would also benefit from increased sales volumes and cost cuts.