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BlueScope Steel Announces Strong Full Year Results
08/20/2008 - BlueScope Steel reports Net Profit After Tax of $596 million and underlying earnings per share of $1.10 for FY08.
BlueScope Steel reported Net Profit After Tax (NPAT) of $596 million for FY08 and underlying NPAT of $816 million (an increase of 27%). This result delivers underlying earnings per share of $1.10.
"This result was driven by strong global demand and improved spreads, particularly in export markets where higher global steel prices offset rising raw material costs,” said Managing Director and CEO Paul O'Malley.
"A better-than-expected performance from the acquisitions made during FY 2008, namely Smorgon Steel's Distribution business and IMSA Steel Corp. North America also contributed positively to the result,” said O'Malley, commenting on the underlying business performance during FY08.
“Performance was further boosted by sales growth in the Coated and Building Products businesses across all regions in Asia and North America. However, these were partly offset by reduced spread for North Star BlueScope Steel and a strengthening AUD."
Outlook—Regarding the company’s current outlook, O'Malley said, “We expect a strong 1H FY09, having already had a good start to FY09, mainly driven by continued strong global steel demand and prices.
“Our Asian businesses, particularly Thailand, where economic conditions continue to improve, are producing consistent results. Our North American Coated and Building Products businesses are performing at the solid levels at which they finished FY08, despite the uncertainty that currently exists within the U.S. economy. We are excited by the opportunities in the North American market provided by our increasing capability and product offering resulting from the IMSA Steel Corp. acquisition.
“We are now the leading global steel pre-engineered buildings manufacturer supplying predominantly to commercial and industrial markets,” noted O’Malley.
“As previously announced, during the second half of FY09 we will undertake the No. 5 Blast Furnace Reline and sinter plant upgrade project. Detailed project planning for the approximate 105-day reline period (March to June 2009) is in place. On a longer-term basis,” concluded O’Malley, “these projects will deliver both cost and volume benefits.”
The BlueScope Steel Board of Directors declared a final ordinary dividend fully franked of 27 cents per share, an increase of 1 cent on last years' final dividend. This brings the total dividend for FY2008 to 49 cents per share, a 4% increase on the year prior.
