Australian steel maker BlueScope confirmed its previous guidance at its Annual General Meeting that 1H FY2022 underlying earnings before interest and tax will be in the range of AUD 2.1 billion to AU 2.3 billion, subject to spread, FX and market conditions. Global steel prices, spreads and demand across key geographies have been strong, with favourable conditions in building and construction end use segments. Managing Director & CEO Ms Mark Vassella said “While BlueScope has seen favourable macroeconomic and industry trends over the last year, the Company's record FY2021 performance and robust financial position reflect the success of our strategy at work and is a testament to the contribution of our 14,000 people, our disciplined financial framework and the operating leverage of our diverse portfolio."Australian Steel ProductsThe business is expected to deliver a significantly better result than 2H FY2021, with strength in domestic volumes, particularly in higher value products for the building and construction sector, and strong realised steel spreads. Margins and volumes in the downstream businesses are also benefitting from the robust demand environment. A stronger export coke contribution is expected with margins remaining robust. The assessment of the reline of the currently mothballed No. 6 Blast Furnace at Port Kembla is continuing -including refining the scope of included technologies that support GHG emissions intensity reductions and other environmental measures such as water and particulate emissions management controls. A further update will be provided at the release of BlueScope's 1H FY2022 results in February 2022.North Star BlueScope SteelNorth Star is expected to deliver a significantly stronger result than 2H FY2021 driven by record steel pricing and spreads1 - modestly impacted by higher alloy and conversion costs, including labour. More recently, benchmark Midwest hot rolled coil prices have begun to ease back from record levels. The business continues to perform well and has been operating at full capacity as sales volumes to construction, manufacturing and automotive end use applications remain solid. Importantly, the major expansion of North Star is on track for commissioning in 2H FY2022.Building Products Asia and North AmericaThe segment is expected to deliver a stronger result compared to 2H FY2021. The North America coated products business continues to see cyclically-elevated margins and the China businesses are benefitting from favourable seasonality. These stronger performances are being modestly offset by the impacts of COVID-19 related disruptions across South East Asia - particularly in Malaysia, Vietnam and Indonesia.Buildings North AmericaA similar result to 2H FY2021 is expected, with a softer performance from the core EBS business on margin compression due to higher steel feed prices to be offset by a stronger contribution from the BlueScope Properties Group on project timing.New Zealand and Pacific IslandsThe robust demand and pricing environment across construction and infrastructure sectors is expected to deliver a stronger result compared to 2H FY2021, notwithstanding supply-chain COVID-19 related disruptions during the half.
Australian steel maker BlueScope confirmed its previous guidance at its Annual General Meeting that 1H FY2022 underlying earnings before interest and tax will be in the range of AUD 2.1 billion to AU 2.3 billion, subject to spread, FX and market conditions. Global steel prices, spreads and demand across key geographies have been strong, with favourable conditions in building and construction end use segments. Managing Director & CEO Ms Mark Vassella said “While BlueScope has seen favourable macroeconomic and industry trends over the last year, the Company's record FY2021 performance and robust financial position reflect the success of our strategy at work and is a testament to the contribution of our 14,000 people, our disciplined financial framework and the operating leverage of our diverse portfolio."Australian Steel ProductsThe business is expected to deliver a significantly better result than 2H FY2021, with strength in domestic volumes, particularly in higher value products for the building and construction sector, and strong realised steel spreads. Margins and volumes in the downstream businesses are also benefitting from the robust demand environment. A stronger export coke contribution is expected with margins remaining robust. The assessment of the reline of the currently mothballed No. 6 Blast Furnace at Port Kembla is continuing -including refining the scope of included technologies that support GHG emissions intensity reductions and other environmental measures such as water and particulate emissions management controls. A further update will be provided at the release of BlueScope's 1H FY2022 results in February 2022.North Star BlueScope SteelNorth Star is expected to deliver a significantly stronger result than 2H FY2021 driven by record steel pricing and spreads1 - modestly impacted by higher alloy and conversion costs, including labour. More recently, benchmark Midwest hot rolled coil prices have begun to ease back from record levels. The business continues to perform well and has been operating at full capacity as sales volumes to construction, manufacturing and automotive end use applications remain solid. Importantly, the major expansion of North Star is on track for commissioning in 2H FY2022.Building Products Asia and North AmericaThe segment is expected to deliver a stronger result compared to 2H FY2021. The North America coated products business continues to see cyclically-elevated margins and the China businesses are benefitting from favourable seasonality. These stronger performances are being modestly offset by the impacts of COVID-19 related disruptions across South East Asia - particularly in Malaysia, Vietnam and Indonesia.Buildings North AmericaA similar result to 2H FY2021 is expected, with a softer performance from the core EBS business on margin compression due to higher steel feed prices to be offset by a stronger contribution from the BlueScope Properties Group on project timing.New Zealand and Pacific IslandsThe robust demand and pricing environment across construction and infrastructure sectors is expected to deliver a stronger result compared to 2H FY2021, notwithstanding supply-chain COVID-19 related disruptions during the half.
