Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

BlueScope Steel Swings to Profit in Second Half as Sales Gain

BlueScope Steel CEO Paul O'Malley
BlueScope Steel CEO Paul O'Malley speaks during the company's results news conference in Sydney. Photographer: Ian Waldie/Bloomberg

Aug. 16 (Bloomberg) -- BlueScope Steel Ltd., Australia’s largest steelmaker, swung to profit in the second half and reinstated its dividend after sales increased.

Net income for the six months ended June 30 was A$154 million ($138 million), the Melbourne-based company said today in a statement. That compares with a loss of A$473 million a year ago and a A$141 million profit forecast by Credit Suisse Group AG.

BlueScope is benefitting from growth in Australia, its biggest market, and increased sales in Asia. Steel prices averaged 41 percent higher in the half than a year earlier.

“More than two thirds of the half year result was delivered in this (June) quarter, reflecting the culmination of the hard work done earlier in the year,” the company said. Lower costs and improved sales helped drive a stronger result, it said.

Hot rolled coil steel prices gained 12 percent in the first half and averaged $628 a metric ton compared with $447 a year earlier. BlueScope’s revenue in the second half was A$4.5 billion, up 10 percent on a year earlier.

It declared a 5 cent dividend, the first dividend since the December 2008 half.

The reinstatement of the dividend reflects “the medium-to-long-term outlook for BlueScope and the global steel industry and improved conditions in economies where we operate,” Paul O’Malley, BlueScope’s chief executive officer, said in the statement.

To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net

To contact the editor responsible for this story: Hwee Ann Tan at hatan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.