AUSTRALIAN ORE MINER MIDWEST BLAMES MURCHISON FOR 2007 LOSS.

SYDNEY, April 1 Asia Pulse - Iron ore junior Midwest Corporation Ltd (ASX:MIS) has blamed an unsuccessful attempted takeover by Murchison Metals (ASX:MMX) for an operating loss in the 2007 financial year.

And there is more to come, warned Midwest, now under a second takeover threat from China's SinoSteel.

Midwest told the stock exchange today that it had incurred an operating loss before depreciation, amortisation and income tax in the year to the end of December, 2007, of $US0.76 million ($A833,059).

It said the result was "adversely impacted by $A9.47 million ($US8.64) million in costs directly attributable to last year's attempted takeover by Murchison Metals Limited".

"Excluding takeover defence costs, Midwest would have earned an operating profit (before depreciation, amortisation and income tax) of $8.71 million for the period," Midwest said. Midwest said its sales revenue in 2007 had been $36.17 million, a nine per cent increase on 2006, with gross profit at $5.59 million, down 42 per cent.

"The 2007 gross profit was adversely impacted by the write-off of the Company's road haulage assets as a result of the requirement for Midwest to move its haulage operations to rail," the company said.

"Excluding takeover related costs, the Midwest 2007 net profit after tax would have been $0.75 million, but when including takeover related costs the result was a net loss after tax of $6.40 million."