Australian steelmaker BlueScope Steel has posted a net profit of AU$92.7 million for the first half ended on December 31 of the financial year 2014-15, significantly increasing compared to a net profit of AU$3.7 million in the corresponding period of the previous financial year.
When the same periods are compared, BlueScope's sales revenues increased by nine percent to AU$4.4 billion, mainly due to the increased shipment volumes driven by higher export volumes at its Australian Steel Products business, the acquired businesses, and favorable impacts from a weaker Australian dollar against the US dollar. These were partly offset by lower shipment volumes in China.
According to BlueScope, in the second half of the current financial year, continued positive residential building activity, further contributions from acquisitions and the falling Australian dollar will benefit the Australian business. However, the recent falls in Asian and US spot steel prices will compress margins in the Australian segment and also at North Star, resulting in a weaker second half compared to the first half.