Australian steelmaker BlueScope Steel has announced that it expects its preliminary unaudited underlying earnings before interest and tax (EBIT) for the first half ending December 31 of the financial year 2016-17 to be at least $510 million, subject to market conditions, increasing from the prior guidance.
BlueScope chairman John Bevan stated that the company is encouraged by improvements in the Australian business driven by better dispatch volumes and productivity gains despite higher raw material costs. Driven by strong cash flow from the Australian business and North Star, BlueScope reduced its net debt by $595 million in the second half of the financial year 2015-16, according to Mr. Bevan.
Regarding its growth strategies, BlueScope stated that, in coated and painted products, its focus is to further grow its business, particularly in Asia. In Thailand, NS BlueScope Coated Products, a joint venture (JV) between Japanese steelmaker Nippon Steel and Sumitomo Metal Corporation (NSSMC) and BlueScope, is targeting increasing sales of home appliance steels and is developing a third metal coating line with in-line painting. In India, Tata BlueScope Steel, an equal joint venture between Indian steel giant Tata Steel and BlueScope, is viewing the potential for additional painting capacity. Meanwhile, in Australia the company is targeting further sales growth opportunities in inter-material areas such as roofing, steel framing and facades.