Australian investors are known to be very parochial, and have historically reflected this attitude with a home bias – possibly because of the lure of familiarity with companies, franking credits and the currency hedge (most spend in Australian dollars).
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Shares in steelmaker, BlueScope leapt by more than 7% yesterday after a second earnings upgrade in a month. The update, released ahead of the company’s annual meeting, took investors by surprise coming so soon after the very positive lift in projected earnings in a month.
Read MoreSteelmaker BlueScope Steel set the market on fire on Friday with a sharp upgrade to first-half earnings. Meanwhile, financial services records group, Link has rejected the $2.8 billion takeover private equity bid, claiming it materially undervalued the company.
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QBE Group chief executive Pat Regan will leave the insurer after an external investigation into workplace communications that the board said did not meet the group’s code of ethics and conduct. Meanwhile, former senior BlueScope Steel executive Jason Ellis has pleaded guilty in Sydney’s court to one charge of obstructing a cartel investigation.
Read MoreFY20 ended on a strong note for BlueScope Steel, observes UBS, but is not enough to alleviate the broker’s concerns regarding steel prices which are at a four-year low.
Read MoreAustralia’s largest steelmaker, BlueScope, has matched a warning of lower earnings for the year to June with news yesterday that statutory earnings fell a massive 91%. The fall came amid weak profits for steel products in Australia, Asia, the US, and New Zealand.
Read MoreBlueScope Steel is looking at a double hit to 2019-20 profit from the COVID-19 pandemic and a write-down of the value of its New Zealand Steel subsidiary.
Read MoreUBS updates modeling following a trough in earnings that appears shallower than previously expected. The broker now assesses the risk/reward is balanced and retains a Neutral rating.
Read MoreAt current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreAt current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
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Shares in troubled department store Myer plunged by more the 44% yesterday for no apparent reason.
Read MoreOn Citi’s assessment, BlueScope Steel released a better-than-expected interim performance, but also provided soft guidance for H2. Coronavirus uncertainty rules. The analysts believe market sentiment will likely remain weak for the time being.
Read MoreBluescope Steel confirmed yesterday its lowered guidance for the December half and for 2019-20 while also warning that its China operations are likely to be “heavily impacted” by disruptions stemming from the coronavirus in February and March.
Read MoreBlueScope Steel has set a bold target of reducing its carbon intensity by -1% per annum by 2030, UBS notes. To achieve this, every site has a plan and the majority of the reduction will be led by Port Kembla. Port Kembla is expected to use cleaner coal and higher-grade iron ore.
Read MoreBlueScope Steel has confirmed first half guidance for earnings (EBIT) around $275m. Earnings drivers, including US and Asian steel spreads, are in line with assumptions provided in the original guidance.
Read MoreShares in BlueScope Steel rose yesterday when the company told the AGM that it was still expecting a sharp fall in first-half earnings.
Read MoreMorgan Stanley believes the recent strength in the share price more than accounts for the positive momentum in steel prices. The broker believes investors should capitalise on the strength in the share price and downgrades to Equal-weight from Overweight.
Read MoreBlueScope Steel has changed tack and will now take on more debt to help finance its US expansion – that’s a move that will see the company no longer target cash retention and instead see a gearing up of its balance sheet.
Read MoreThe company’s second-half guidance is reduced by around -10% to “approaching $500m”. Credit Suisse suggests the market is looking at just how low guidance can go for FY20.
Read MoreBlueScope Steel’s forthcoming 2018-19 results have been given a small whacking by the combination of Donald Trump’s steel trade/tariff war causing global steel prices to soften and the rise in global iron ore prices.
Read MoreCredit Suisse US steel analysts have reduced hot rolled coil (HRC) and steel spread assumptions citing planned capacity additions, declining US steel tariff protection and the likely rise in scrap.
Read MoreSpreads in US spot hot-rolled coil versus scrap continue to weaken, declining to US$309/t, which Credit Suisse notes is below the company’s assumed US$394/t for the June half.
Read MoreThe broker suggests reduced US steel tariffs for Canada could result in US steel spread pressure as imports potentially rise, impacting on already materially lower steel prices. US scrap prices may rise on likely increased supply from Turkey and reduced supply from Canada.
Read MoreSix months ago management was of the opinion the industry structure was the best in 10 years. Since then, weak Chinese hot-rolled coil prices have meant the North Star spread has fallen around -35% to US$360/t and the broker notes incremental new supply is coming to the US.
Read MoreSix months ago management was of the opinion the industry structure was the best in 10 years. Since then, weak Chinese hot rolled coil prices have meant the North Star spread has fallen around -35% to US$360/t and the broker notes incremental new supply is coming to the US.
Read MoreA record interim profit and higher dividend and a continuing buyback for shareholders in steelmaker BlueScope.
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A glance through the latest expert views and predictions about commodities. Steel; mining & franking; diversified majors; thermal coal; and Nickel Mines.
Read MoreCiti observes rising steel prices/spreads have begun to reverse and may now be past the peak. Sentiment in US steel markets and China’s macro data are likely to get worse before getting better, in the broker’s view.
Read MoreBlueScope Steel is looking into whether it should boost its US steelmaking capacity by up to just under million tonnes to take advantage of President Trump’s tariffs on imports of steel into America.
Read MoreThe balance sheet is robust and cash generation strong so Credit Suisse expects the buyback of $150m per half will be renewed along with a unchanged 6c per share half-year dividend. The company will report results on August 13.
Read MoreMacquarie reviews its investment thesis, noting the macro support is good despite the machinations of US trade policy. The broker raises FY19 estimates by 35% on higher steel spread assumptions.
Read MoreSupportive US steel prices should drive earnings upside for BlueScope, the broker suggests, and subsequent cash flow should facilitate capital management options that will provide the next catalyst.
Read MoreConsistent with expectations, the company will endure no tariff or quota on steel exported to the US and can continue to export cold rolled coil without a 25% tariff, reports the broker.
Read MoreStrong US steel margins have caused BlueScope ((BSL)) to upgrade second half guidance by 12%, now expecting FY18 second half operating earnings (EBIT) of $680m. The increase is mainly because of realised steel spreads, which have increased strongly for the North Star mill in Ohio. Upgraded guidance implies FY18 operating earnings of around $1.2bn.
Read MoreBlueScope has upgraded second half earnings guidance as expected, given rising steel spreads in the US. But the 12% increase only serves to bring guidance in line with consensus forecasts, the broker notes.
Read MoreBlueScope Steel shares had an up, down, flat sort of day yesterday after the company lifted its guidance for underlying earnings before interest and tax (EBIT) for the second (June 30) half helped by stronger margins at its plant in the United States.
Read MoreBlueScope Steel shares rose nicely yesterday after the company revealed a 23% rise in first-half net profit to $441.2 million, helped by the restatement of deferred tax liabilities after January’s cut in US corporate tax rates (in its North Star steel business in the US).
Read MoreBlueScope Steel says it is still on track to report sharply lower underlying result for the six months to December.
Read MoreThe Senate has delivered a positive report recommending the anti-dumping measures bill be passed.
Read MoreWhile slightly missing the broker’s high-end expectations, BlueScope’s result was solid. It was FY18 guidance that disappointed.
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