BlueScope Steel Earnings Report: Profit Falls 27% in First Half
Australian steelmaker BlueScope Steel has reported a 27% decline in first-half profit, citing weaker prices for its sales. The company’s net profit for the six months through December stood at 439.3 million Australian dollars (US$287.0 million), down from 598.9 million in the previous year.
BlueScope Steel’s underlying earnings before interest and taxes also saw a 16% drop year-on-year, with a reported figure of 718.4 million. This is lower than the earlier guidance of the upper end of the 620 million-670 million range provided by the company in November.
For the second fiscal half, BlueScope Steel expects its underlying EBIT to be in the range of 620 million to 690 million Australian dollars. The directors have declared an interim dividend of 25 Australian cents per share, which is consistent with the payout from the previous year, and have also approved a top-up to its share buyback program.
As a result of the increased buyback, BlueScope Steel can now purchase up to 400 million Australian dollars’ worth of stock over the next 12 months. The company aims to support its financial performance and provide value to its shareholders.
This earnings report indicates the challenges faced by BlueScope Steel in the current market environment. Weaker prices have impacted its profitability, leading to a decline in both net profit and underlying earnings. The company’s plans to increase its share buyback program demonstrate its commitment to improving shareholder returns.
Despite the challenging market conditions, BlueScope Steel remains optimistic about its future performance. By closely monitoring prices and implementing effective cost management strategies, the company aims to navigate the market uncertainties and deliver sustained growth in the long term.
BlueScope Steel will continue to focus on optimizing its operations and providing innovative solutions to meet the evolving needs of its customers. With a strong track record of resilience and adaptability, the company is well-positioned to overcome the current challenges and drive profitability in the steel industry.
Analyst comment
Negative news: Australian steelmaker BlueScope Steel reported a decrease in profit and expects earnings to fall slightly in the second half. This reflects weaker prices for its sales. Additionally, the company’s underlying earnings before interest and taxes have decreased compared to the previous year. The increase in share buyback will enable the company to purchase stock over the next 12 months. Analysts predict a decline in the market due to the company’s lower earnings and weaker sales prices.
