BHP NET SEEN AROUND 600 MLN DLRS FOR NINE MONTHS
Australia's largest company, The Broken
Hill Pty Co Ltd <BRKN.S> (BHP), is expected to report a net
profit of around 600 mln to 620 mln dlrs tomorrow for the first
nine months ended February 28, share analysts polled by Reuters
said.
    This would be well below the 813.0 mln dlrs earned in the
first three quarters of 1985/86. In the full year ended May 31
1986 the group earned a record 988.2 mln dlrs.
    The analysts estimated that the group would report a third
quarter net in the region of 200 mln to 220 mln dlrs, against
238.6 mln a year earlier and 220.3 mln in the second quarter.
    BHP's earnings in the first half ended November 30 amounted
to 397.0 mln dlrs, sharply down from 589.3 mln a year earlier.
    The analysts predicted that BHP will report an upturn in
petroleum earnings compared with the first quarter, reflecting
some improvement in crude oil prices from the Bass Strait
fields, but these gains would be offset by lower mineral and
steel earnings.
    They said the mineral group has been hit by lower coal
prices and shipments to Japan while the steel division has been
affected by industrial and production problems.
    The analysts noted that the third quarter is normally BHP's
lowest-earning period owing to a number of seasonal factors,
and they predicted a sharp rise in fourth quarter net to around
300 mln dlrs.
    One key factor in the fourth quarter is expected to be a
tax break of some 70 mln dlrs for the investment allowance on
capital expenditure in the steel division, they said.
    They said they saw BHP's full year earnings at around 900
mln to 920 mln dlrs. They added that such a decline from
1985/86 would be no surprise, noting BHP has said that it would
be difficult to equal its record 1985/86 net profit.
 REUTER
