Multi-national steel and steel products group, BlueScope Steel (ASX: BSL) today reported robust sales and margins in all market segments.
Chairman John Bevan told the company’s annual general meeting that earnings before interest and tax in the current year would be around 10 per cent higher than in the corresponding period last year, when they were $745 million.
“BlueScope’s strategy and our focus on shareholder returns are continuing to deliver results,” Bevan told the meeting.
“Since completing our transformational cost saving initiatives in Australasia and the acquisition of the 50 per cent of North Star we did not own, we have now delivered underlying EBIT of over $1.1 billion in each of the last two years.”
BlueScope negotiated reduced benefits with its staff and re-organised its local steel making operations which has boosted its Australian steel operations.
Bevan said the company was now considering an expansion of its Ohio, US steel making capacity by up to 900,000 tonnes a year.
Recently, as reported by @AuManufacturing, has purchased new steel coil treatment, galvanising and painting operations to add to its growing presence in South East Asia.
Bevan said North American operations were at capacity, its Indian, Chinese and Vietnamese businesses were performing well, and demand was robust in New Zealand.
“There are many organic growth opportunities across our portfolio of businesses in markets as diverse as India, ASEAN, China, the U.S. and Australia and New Zealand.”
BlueScope’s shares rose 51 cents today to $12.51.
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