BlueScope Steel (BSL) has reported a strong, 62% jump in underlying half-year profit to $79.6 million as the lower Australian dollar and stronger steel margins boosted earnings.
Group sales rose 9% per cent to $4.35 billion for the six months ended December 31 due to contributions from acquisitions, stronger volumes in North America and the more favourable exchange rate against the US dollar.
The company reported a net profit, (which includes one-off items), of $92.7 million, up from $3.7 million a year ago.
BlueScope chairman Graham Kraehe said the result showed the group’s turnaround has been successful.
“Strategic investments in Australian and international growth markets are already translating into earnings performance," he said.
BlueScope says it expects full-year earnings before interest and tax to be up to 20% higher compared to its previous result.
BlueScope will pay a 3 cents a share interim dividend. It’s the first payout to shareholders for some years.
The result is in share contrast to the weak underlying result from Arrium’s steel operations, which lost money in the December half year.
BSL 2Y – Bluescope continues to improve
