BlueScope regains profit, cites solid businesses in Asia, US and at home
Riding on the heels of soaring demands and prices for its product, steelmaker BlueScope Ltd (ASX: BSL) revealed on Monday that it has achieved a full-year profit of $126 million following its loss of $66 million from the previous corresponding period.
Company chief executive Paul O'Malley pointed to the business' second half remarkable sales results in the Asian region, where China, Indonesia, Malaysia and Vietnam all contributed to lift BlueScope through recovery this year.
Mr O'Malley also added that the company's results were further boosted by substantial decrease on permanent cost base during the 2009 financial year, slashing by about $340 million from the high seen in 2008.
Proving more good news for BlueScope were the positive market developments on its Australian, New Zealand and US operations as the company's chief executive reported that surging demands fuelled the solid export sales and spiked up earnings from both the Aussie and Kiwi markets.
Mr O'Malley is also upbeat that the US market was performing well, with the North Star BlueScope Steel delivering goods that further swelled the company's impressive results.
Despite the results, the company predicted that profits would be considerably tempered as the months wear on and BlueScope gears up for possible skyrocketing prices of iron ore and coal prices, which could discourage demands for steel and push down its market price.
The company added that the sustained gains being collected by the Australian dollar should be another reason for worry as a strong local currency would add more pressure on BlueScope's goals for the next few months.
Notwithstanding, Australia's biggest steel producer declared that dividends would be issued to shareholders, who should expect final distribution of five cents per share, fully franked.