BlueScope Steel has announced that its underlying earnings before interest and taxes (EBIT) for the first half of the financial year are expected to be at the lower end of its previously issued guidance range of $550 million to $620 million. The announcement was made at the company’s annual meeting. BlueScope is a global provider of steel products and solutions, manufacturing steel slabs, hot rolled coil, plate products, and coated and painted steel products. It serves the building and construction, automotive, and general manufacturing sectors.
Despite macroeconomic conditions remaining mixed, BlueScope chief executive Mark Vassella noted positive signs in Australian construction markets and improved spreads in the US. He stated the company’s focus would remain on cost management, capital allocation, and capability enhancement while positioning the business for long-term growth. Initiatives aimed at boosting near- and medium-term earnings, as well as unlocking value from surplus land, are expected to contribute an additional $500 million in annual earnings by 2030.
In Australia, BlueScope’s steel products segment performed slightly better than in the prior six-month period, benefiting from the partial land sale in West Dapto and a one-off GST credit. However, the company noted ongoing cost pressures and softer pricing within the Australian market. Building markets are reportedly firm, while distribution is moderate.
Conversely, BlueScope North America is projected to deliver a result approximately one-third higher than the previous half. The North Star segment is anticipated to contribute a result around 50 per cent higher than the last six months of the past financial year, driving the improved performance in the region.
