Monday, August 18, 2008

BlueScope Steel Announces Strong Full Year Results

At its annual results presentation in Sydney today, BlueScope Steel announced a reported Net Profit After Tax (NPAT) for FY08 of $596 million and underlying NPAT of $816 million (an increase of 27%). This result delivers underlying earnings per share of $1.10 and is slightly better than the guidance provided as part of the market update on the 12th May.

Managing Director and CEO Paul O'Malley said: "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.

Commenting on the underlying business performance during FY08, Mr O'Malley said: "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.

"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."

Turning to the current outlook, Mr 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 US 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.

"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, these projects will deliver both cost and volume benefits.

"We will provide further guidance on first half FY09 performance during the November AGM.

"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."

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