BlueScope has logged a half-year profit up $29 million on the same time last year - but the Australian arm of the business' income fell over that time.
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The steelmaker's CEO Mark Vassella announced pre-tax earnings (EBIT) of $718 million and a net profit after tax of $439 million - that is a $29 million boost on the first half figures of the previous financial year.
"We've seen real volatility across the global economy, particularly prevalent in the steel sector," Mr Vassella said. "Despite this, I'm pleased to report BlueScope has again delivered a strong result."
He said the overall strong performance of the steelmaker in recent years gave it the freedom in launch a number of big-ticket items so far in the 2023-24 financial year.
"The first half saw real progress on a range of key projects," Mr Vassella said.
"In the US, the ongoing ramp-up of North Star is nearing full run-rate, and the recycling business is performing well. In Australia we have commenced the No6 Blast Furnace reline, building our bridge to a low carbon future, and construction for the new metal coating line (MCL7) in Western Sydney is on track.
"And at Glenbrook, south of Auckland, we've begun works to install the $300 million Electric Arc Furnace, securing a bright future for steelmaking at New Zealand Steel."
The Port Kembla steelworks is part of the Australian Steel Products division, which contributed pre-tax earnings of $257.7 million, which was slightly lower than the previous two half-years.
In the first half of the 2022-23 financial year the ASP figure was $273.8 million.
This drop could be attributed to some softening in demand and a fall in prices in the last few months of 2024.
However the company is seeing steady growth in its premium products like Colorbond - made at the Springhill works - and is continuing to push more steel through that site.
The outlook for the overall business' pre-tax earnings for the back half of this financial year is expected to be lower than the first half - between $620 million to $690 million - due to what Mr Vassella called "unprecedented softness" in Asian steel spreads.
However, Mr Vasella said this showed the resilience of the business, which was set up in the job losses and pay freezes of the 2015 steel crisis.
"Upon delivery, this will again reinforce the strength of BlueScope's diversified business model, that can deliver at any point in the cycle," Mr Vassella said.
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
