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Bluescope Net Profit in H1 Shrinks 70%

Steel News - Published on Tue, 25 Feb 2020

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BlueScope has reported a 1H FY2020 net profit after tax of AUD 185.8 million, down 70 per cent on 1H FY2019 and an underlying NPAT of AUD 199.6 million'. BlueScope Managing Director and CEO Mr Mark Vassella said "Underlying EBIT for the half was AUD 302.4 million, down on 1H FY2019, driven by the decline in commodity steel spreads which we flagged in August last year. However, with improving conditions at the tail-end of the half, we finished 1H FY2020 slightly stronger than our guidance.”

NORTH STAR EXPANSION UPDATE - On the cornerstone project to expand the North Star mini-mill in Delta, Ohio, by around 850,000 tonnes per annum Mr Vassella commented, "We are very pleased with progress. Work is on schedule, site works are progressing well and major OEM equipment orders have been placed.

CHINA COVID-19 UPDATE - Following the implementation of return to work safety guidelines across BlueScope China, the Group's China businesses are all now operational, with the exception of our Hubei sales office. Most employees have now returned to work safely and no cases of COVID-19 have been reported within BlueScope China. As our BlueScope China businesses and their customer/supplier operations gradually return to normal levels during February, it is expected that February and March business performance will be heavily impacted. The rate of recovery of the balance of the half year remains unclear at this point. Outside of China, we are aware of some impacts to our supply chains which, to date, have been mitigated. We continue to monitor the situation.

OUTLOOK FOR 2HFY2020 - Mr Vassella said "Underlying demand across our major markets is generally stable, however the economic impact of COVID-19 has created uncertainty for our Asian businesses and Asian steel spreads in the near term. The impact to US Midwest spreads, if any, is unclear. We are aware of some impacts to our supply chains which, to date, have been mitigated; we continue to monitor the situation. On this basis the Company expects 2H FY2020 underlying EBIT similar to 1H FY2020 (which was S302.4 million). Expectations are subject to spread, foreign exchange and market conditions - including potential impacts from COVID-19."

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Posted By : Rabi Wangkhem on Tue, 25 Feb 2020
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