Australia’s leading steelmaker BlueScope has confirmed its previous guidance provided in August that H1 FY2023 underlying earnings before interest and tax will be in the range of AUD 800-900 million at its Annual General Meeting, subject to spread, FX and market conditions. BlueScope said “The outlook this half for the Group's US businesses has improved moderately since August driven by better than expected margins in downstream businesses, combined with foreign currency translation impacts of the weaker AUD:USD. Domestic dispatches in Australia and New Zealand have been lower than anticipated due to high channel inventories, particularly in the distribution segment, combined with customer hesitancy driven by falling regional prices; underlying domestic demand remains solid supported by the ongoing pipeline of construction activity, albeit impacted by labor constraints and weather related events.”BlueScope’s Managing Director & CEO Mr Mark Vassella said “We are now setting ourselves up for the next decade, deploying our financial strength to secure a sustainable future, long-term growth and shareholder returns. Accordingly, we have invested over AUD 2 billion to build a platform for long-term growth in the US, including the North Star expansion, the establishment of BlueScope Recycling and Materials, and the acquisition of Metal Coaters to establish BlueScope Coated Products, taking BlueScope's total investment in the US to over AUD 5 billion.”Mr Vassella also said “In addition, we are continuing to progress our broader growth and transformation initiatives, with the continued rollout of our digital program, and further progression of our key investment priorities such as a new pipe and tube mill at Port Kembla and the possible addition of Australian metal coating capacity to support demand growth. We are making good progress with our longer term decarbonization plans whilst progressing the Port Kembla blast furnace reline and upgrade project which provides a bridge to the future; the blast furnace reline feasibility study is well progressed.”
Australia’s leading steelmaker BlueScope has confirmed its previous guidance provided in August that H1 FY2023 underlying earnings before interest and tax will be in the range of AUD 800-900 million at its Annual General Meeting, subject to spread, FX and market conditions. BlueScope said “The outlook this half for the Group's US businesses has improved moderately since August driven by better than expected margins in downstream businesses, combined with foreign currency translation impacts of the weaker AUD:USD. Domestic dispatches in Australia and New Zealand have been lower than anticipated due to high channel inventories, particularly in the distribution segment, combined with customer hesitancy driven by falling regional prices; underlying domestic demand remains solid supported by the ongoing pipeline of construction activity, albeit impacted by labor constraints and weather related events.”BlueScope’s Managing Director & CEO Mr Mark Vassella said “We are now setting ourselves up for the next decade, deploying our financial strength to secure a sustainable future, long-term growth and shareholder returns. Accordingly, we have invested over AUD 2 billion to build a platform for long-term growth in the US, including the North Star expansion, the establishment of BlueScope Recycling and Materials, and the acquisition of Metal Coaters to establish BlueScope Coated Products, taking BlueScope's total investment in the US to over AUD 5 billion.”Mr Vassella also said “In addition, we are continuing to progress our broader growth and transformation initiatives, with the continued rollout of our digital program, and further progression of our key investment priorities such as a new pipe and tube mill at Port Kembla and the possible addition of Australian metal coating capacity to support demand growth. We are making good progress with our longer term decarbonization plans whilst progressing the Port Kembla blast furnace reline and upgrade project which provides a bridge to the future; the blast furnace reline feasibility study is well progressed.”
