Home > Hills Holdings yearly result dragged down by restructuring costs

Hills Holdings yearly result dragged down by restructuring costs

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Hills Holdings has managed a $19 million underlying profit, though reported a loss of $94 million for the last financial year, due to expensive restructuring costs.

The company, which has been changing its focus to technology and communications and is looking to sell two of its steel businesses, reported that the cost of restructuring was $155 million.

CEO Ted Pretty explained that the changes at Hills would bring long-term gains.

"Hills is a simpler and more streamlined company than it was 12 months ago," he said, according to AAP.

"We had to go out and create a far more leaner structure so we were better placed - we've taken our costs out.

As reported earlier, Hills is attempting to sell its Orrcon and Fielders steel operations to BlueScope, with the sale to take place late in the year if approved by the ACCC.

The company announced 300 job cuts in November last year, with half of these at Orrcon, and Pretty used the company’s half-yearly results in February to detail Hills’s three-year plan to transform the company, with the aim to have three quarters of its revenue come from non-steel products.

Hills is by its name linked to the famous Australian invention, the Hills Hoist rotary clothesline, which first went into production in 1946.

To read the full annual report, click here.

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