There has been rising talk that BlueScope (BSL) wants to either abandon steel making in Australia (at its huge Port Kembla plant in NSW), but this morning’s 2014-15 result raises questions about all that chat.
BlueScope has done well, lifting profit and making sure it benefited from the lower Aussie dollar.
BlueScope Steel said this morning it earned a full-year statutory profit of $136.3 million, up from the $82.4 million loss in 2013-14.
Revenue rose to $8.572 billion from $8.007 billion in financial 2014 on higher exports and increased US domestic sales.
The steel building materials manufacturer said its underlying profit in the year ended June 30 increased to $134.1 million, up 8.6% from the year-earlier $123.5 million.
BlueScope said it would pay a final, fully franked dividend of 3c cents a share on October 19. That compares to no final for the previous financial year.
With the 3 cents a share interim, BlueScope is making a full year payout of 6 cents a share, against nil for 2013-14.
It’s a far better result than rival Arrrium (ARI) which, apart from losses and impairment in its iron ore business, lost $8.7 million in the year to June.
Managing director Paul O’Malley said in this morning’s statement that all but one of the company’s divisions posted an increase.
“We have a strong competitive advantage in global markets – highlighted by our outstanding brands, technology, channels to market and manufacturing footprint,” he said in the statement.
“We are the third largest manufacturer of painted and coated steel products globally, the number one in building and construction markets and the recognised quality leader in nine countries.”
