Steel maker BlueScope (BSL) has forecast little change in second half earnings after it reported a modest profit for the six months to December yesterday.
The company revealed a December half profit of $3.7 million, up from the loss of $23.8 million for the first half of 2012-13.
Underlying net profit was $49.1 million, up from a loss of $1.6 million a year earlier.
Group revenue rose 8% to just on $4 billion for the half year.
The company once again omitted a dividend to shareholders, unlike its rival Arrium (ARI), which last week used its iron ore earnings to boost the payout to shareholders from 2c a share to 62 a share for the December 2913 half year.
Bluescope told the ASX that second half underlying net profit after tax "would be similar to the first half, taking into consideration the usual cyclicality of earnings, maintenance shutdowns and assuming the political crisis in Thailand does not materially impact on earnings there".
The company has significant steel rolling and marketing operations in Thailand.
BSL vs ARI 1Y – BlueScope improving but unlike Arrium no dividend
The company said it had seen a small, but widespread lift in demand within the Australian market for the first time for several years.
But it also said those Australian operations continued to drag on the group’s performance, with the domestic coated and industrial products division posting a net loss of $900,000, against a small $2.4 million profit a year earlier.
At the underlying level the Australian operations showed a better performance, registering a profit of $26.9 million, up from the year earlier loss of $10.6 million.
And its building products and steel distribution arm remained unprofitable, with a December half net loss of $10.9 million, little changed from the $10.5 million loss a year earlier. At the underlying level it was a profit of $10.9 million, up from a loss of $7.1 million a year earlier.
BlueScope Chairman, Graham Kraehe said in the statement yesterday that the Board was pleased with the continued improvement in the company’s performance and progress on growth initiatives.
BlueScope said net debt at December 31 was $A213.7 million.
The shares ended at $6.30, up more than 7% on the day.
