Steel producer Bluescope Steel returned to the black in the 2010 year, earning a net profit of $126 million.

The company said yesterday that figure was up $192 million from the previous year's loss, thanks to a strong performance in Asia

The 2009 year saw the company hit by the slump in the global steel industry as demand evaporated at home and offshore, while the company also was involved in the costly relining of the number 5 blast furnace at Port Kembla, which came back on line last October.

In contrast, 2010 was a much different year as China's strong growth helped pull Asia out of the slowdown, while economies like Indonesia were barely touched by the slump.

Bluescope chief executive Paul O'Malley said in the statement that the company was pleased with the overall performance given the business environment in fiscal 2010 and the financial turbulence the previous year.

"We delivered an outstanding improvement in our Asian businesses, including record profits in China, Indonesia, Malaysia and Vietnam," Mr O'Malley said in a statement.

"We also achieved a significant reduction in the company's permanent cost base.

"Also encouraging was increasing demand in Australia, strong export sales and good earnings results both in New Zealand and at North Star BlueScope Steel, our steelmaking joint venture in the United States."

The company reported a 5c a share full franked ordinary dividend. No interim was paid. The company paid a 5c a share interim in 2008-09, so in effect the full year payout is unchanged.

Bluescope shares were up 3%, or 7c, at $2.39 yesterday.

Mr O'Malley said the highlights for the year was the overall turnaround in profit, the $340 million cut in permanent costs on financial year 2008, and the $116 million lift in earnings before interest and tax (EBIT) in its Asian businesses against $21 million loss the previous year and an improved balance sheet.

Mr O'Malley said Bluescope expected an ongoing improvement in its Asian operations in the first half of fiscal 2011 and continue to benefit from cost cuts during the previous year.

"We are seeing a modest real-time increase in export steel prices in our region for Q2 delivery," he said.

"Overall, we are planning for significantly improved market conditions over the medium to long term, despite the short term concerns.

"Over the last couple of years we have strengthened the balance sheet and improved the effectiveness of the global BlueScope operations particularly the reduced cost base and improved productivity.'

"The strategic imperative now is to increase market penetration in our footprint to enable our company to profitably capitalise on improving market conditions and grow our presence in global building and construction markets."

Newcrest Mining, the country's largest gold mining company, earned a record $556.9 million in the year to June, more than doubling the $248.1 million earned in 2009, thanks to the surge in world gold prices during the year.

The company said in its 2010 profit report issued yesterday that a "strong second half performance helped deliver a record profit and operating cashflow for the year ended 30 June 2010, driven by increased gold sales, higher realised metal prices and lower cost of sales. Underlying profit of $763.7 million was 58% higher than the previous year, whilst statutory profit increased 124% to $556.9 million.

"Cashflow from operations was 27% higher at $1,303.3 million.

"Gold production of 1,762,200 ounces was 8% higher than the previous year with record production achieved at Telfer and Gosowong. Copper production of 86,816 tonnes was in line with annual guidance.

"Mine production costs were in line with the previous year, notwithstanding higher mine production and increased mill throughput during the year ended 30 June 2010."

Gold prices rose 32% in the year to June 30 and Newcrest was able to ride the rise all the way, and build up sufficient strength and confidence for the tilt at rival gold miner, Lihir, which looks like ending happily with a merger to create one of the world's major gold mining companies.

Newcrest shares jumped 1.4% to $35.20 yesterday in the wake of the 2010 profit report.

Newcrest will pay a final dividend of 20c, taking the full year payment to 25c a share, up from 15c paid in 2009.

Sales from Newcrest's mines in Australia, Indonesia and Papua New Guinea rose 11% to $2.8 billion.

The surge in cash saw the company outlay more than $700 million on capital spending throughout the company, as well as repay debt and end the year with cash balances exceeded borrowings by $216.5 million.

"The company's organic growth strategy continued with the commissioning of the Ridgeway Deeps and Hidden Valley operations, the progression of the Gosowong expansion and the commencement of the Cadia East development during the year, Newcrest said yesterday.

"Increased resources at Wafi-Golpu (PNG) and Namosi (Fiji) highlight ongoing exploration success with these exciting future development options.

"Significant exploration and development work will be undertaken during financial year 2011 to progress these projects.

"A strong operating cashflow has further strengthened Newcrest's balance sheet and with a net cash position and an undrawn US$1.1 billion loan facility, the company is well positioned to complete the proposed combination with Lihir Gold Limited and pursue exciting internal growth opportunities."