Australian steelmaker BlueScope now expects underlying earnings before interest and tax for H1 of FY2022 to be in the range of AUD 2.1-2.3 billion. This is above the prior guidance range of AUD 1.8-2.0 billion, and is subject to spread, FX and market conditions. BlueScope Managing Director and CEO Mr Mark Vassella said “The business continues to benefit from strong spreads, prices and demand. Amidst the ongoing challenges of the COVID-19 pandemic, the BlueScope team continue to do an outstanding job. The performance continues to demonstrate the value of our business model, and further underpins our capacity to invest for long-term sustainable earnings and growth, to position the business for a low carbon future and to deliver solid returns to shareholders.”Key drivers of improved outlookNorth Star, US mini-mill, driven by stronger than expected hot rolled coil prices and spreads, partly moderated by higher alloy and conversion costs, including labourAustralian Steel Products, with further increased domestic volumes, particularly in higher value products for the building and construction sector. Margins in our downstream businesses are also benefitting from the robust demand environment. Export coke contribution has also outpaced expectations with margins remaining robustNorth America coated products business, with ongoing strong steel prices and continued strong demand.With volumes and prices continuing to outperform expectations, BlueScope is seeing a further increase in net working capital employed in the business during the current half.
Australian steelmaker BlueScope now expects underlying earnings before interest and tax for H1 of FY2022 to be in the range of AUD 2.1-2.3 billion. This is above the prior guidance range of AUD 1.8-2.0 billion, and is subject to spread, FX and market conditions. BlueScope Managing Director and CEO Mr Mark Vassella said “The business continues to benefit from strong spreads, prices and demand. Amidst the ongoing challenges of the COVID-19 pandemic, the BlueScope team continue to do an outstanding job. The performance continues to demonstrate the value of our business model, and further underpins our capacity to invest for long-term sustainable earnings and growth, to position the business for a low carbon future and to deliver solid returns to shareholders.”Key drivers of improved outlookNorth Star, US mini-mill, driven by stronger than expected hot rolled coil prices and spreads, partly moderated by higher alloy and conversion costs, including labourAustralian Steel Products, with further increased domestic volumes, particularly in higher value products for the building and construction sector. Margins in our downstream businesses are also benefitting from the robust demand environment. Export coke contribution has also outpaced expectations with margins remaining robustNorth America coated products business, with ongoing strong steel prices and continued strong demand.With volumes and prices continuing to outperform expectations, BlueScope is seeing a further increase in net working capital employed in the business during the current half.