OneSteel Drops by Record in Sydney After Profit Estimate Cut
OneSteel shares tumbled as much as 18 percent to A$0.99, the most since their debut in October 2000. They traded at A$1.025 at 11:07 a.m. local time. Net income in the six months ending Dec. 31, excluding one-time charges for an acquisition, will be in the range of A$55 million ($57 million) to A$75 million, the Sydney-based company said today in a statement. First-half profit last year was A$116 million.
Prices for iron ore, OneSteel’s biggest contributor to profit, have slumped about 30 percent in three weeks, the company said. OneSteel and bigger rival BlueScope Steel Ltd. have cut jobs as they battle higher costs and lower prices.
Iron ore prices may fall to their lowest in more than two years amid weak demand from traders and steel mills in China, the biggest buyer, before rebounding next year, Morgan Stanley said this week. OneSteel said it will give an update on trading conditions on Nov. 21 at its annual meeting.
To contact the reporter on this story: Soraya Permatasari in Melbourne at email@example.com
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.