BlueScope Steel's reported half-year profit increased by 251 per cent on the corresponding period last year but it was seemingly not enough for investors yesterday as the share price tumbled before closing at $2.78, down 34[PI9014]Centsymb.

"The market is obviously not that pleased with the result but looking to the future they say the next half is going to be a lot weaker," Austock senior client adviser Michael Heffernan said.

BlueScope said it was focused on maintaining a robust balance sheet, strong liquidity position and disciplined capital expenditure to deliver $150 million in savings across operations in Australia, New Zealand, the United States and Asia.

Managing director Paul O'Malley did not rule out future equity raising to strengthen the balance sheet.

"These are uncertain times, the demand outlook is uncertain so it would be foolish to rule anything out, particularly in the medium to longer term," he told analysts at a briefing.

Head dealer at Shaw Stockbroking in Sydney, Jamie Spiteri, said BlueScope had been forced to make "fairly big decisions" as they faced an uncertain future.

Mr Spiteri said job losses were often the unfortunate result of such tough economic times.

"If what you are producing is not profitable or there just isn't a demand for it, there's always the possibility of changes to that workforce," he said.

Goldman Sachs JBWere said in a client note there was no clear sign of recovery emerging in the steel sector.

Illawarra Socialist Alliance convenor Chris Williams called on the Federal Government to ensure the future of BlueScope workers.

"This financial crisis has seen governments bail out banks and multinational corporations - now it's time the Government stepped up and supported those who actually deserve it - the workers who are the victims of the crisis."