South32 Ltd (When-Issued) American Depositary Receipts – Sponsored (Australia)(OTCMKTS:SOUHY)was a notable mover during Tuesday’s trading session. The stock rallied by close to 1% on the back of high volumes, which were 1.1 times the daily average. The stock has been trending lower since the beginning of the year forming lower tops and lower bottoms, which are indicative of the fact that bears are in total control. The stock currently trades below all daily moving averages. The MACD indicator continues to trend lower in the bearish zone exhibiting no signs of a reversal. Traders see the stock heading to $4.10 in the near term.
South32 Ltd (OTCMKTS:SOUHY) has announced financial results for FY2015. As per the reports, the biggest highlight was the extraordinary surge in earnings, which enhanced 41% and touched $575 million milestones. It’s the first time when the company had reported this much of growth in earnings.
Quarterly Highlights
The Pro-forma underlying earnings before interest and tax witnessed a positive growth of 56% and touched a whopping $1 billion mark. Company’s Pro-forma profit after tax (PAT) for the period was $28 million.
The senior management team of South32 is delighted to report excellent numbers and hopes that things will continue to turn in its favor in the future as well. According to Graham Kerr, Chief Executive Officer, South32, several cost saving initiatives were implemented by the company over the past few months. To everyone’s surprise, they have already started showing impactful results.
South32 will not stop with these results, and try to attain the next highest level possible in the coming months. To make sure that it enjoys a comfortable financial position in the future, it has decided to reduce controllable costs by as much as $350 million over a period of three years. It’s the result of extraordinary efforts made by the company that it managed to bring down the net debt to $402 million. With more such initiatives to follow, South32 hopes that this figure will further come down in a few months time.
It wants to stay ahead from its competitors in the market; therefore, it’s working on a simple strategy that can maximize the return on invested capital and attain new milestones when it comes to delivering shareholder returns.
Along with the prime focus on financial performance, South32 will also keep taking certain measures required to enhance the safety level, production, distribution and other activities co-linked with revenues. It will keep offering about future initiatives from time to time.
