Steelmaker BlueScope has powered ahead with the recovering global economy reporting preliminary unaudited earnings before interest and tax (EBIT) for the first half of around $530 million, up on previous estimates of $475 million.
Managing director Mark Vassella said all segments of the group’s business performed well in the six months to December with margins and steel spreads improving in Australia and the United States and strong results in Asia.
Vassella said: “The results are a continued demonstration of BlueScope’s operational leverage from our diverse portfolio of businesses and are a tribute to the efforts of our 14,000 people across 18 countries.”
Australian domestic construction and distribution demand has been strong especially for coated and painted steels, delivering the strongest domestic mill sales of 1.175 million tonnes in a decade.
Local steel spreads continue to strengthen and coking cool exports are ‘elevated’.
BlueScope NorthStar in the United States benefitted from a significant increase in hot rolled coil prices.
Building products in Asia and North America delivered a profit double that of the corresponding previous half year.
“Order and despatch rates in key markets remain robust.
“Spot steel spreads in North America and Asia are materially higher than both 1H FY2021 and longer-term averages.”
Picture: North Star BlueScope
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