Australian steelmaker BlueScope Steel has posted a net profit of A$200.1 million for the first half ended on December 31 of the financial year 2015-16, increasing compared to a net profit of A$92.7 million in the same period of the previous financial year.
When the same periods are compared, BlueScope's sales revenues increased by two percent to A$4.43 billion, mainly due to the favorable impacts from a weaker Australian dollar against the US dollar and 100 percent consolidation of the North Star BlueScope Steel joint venture effective from November 2015. These were partly offset by lower steel and iron ore prices.
In the second half of the financial year 2015-16, the company expects weaker pricing with the impact of lagged regional steel prices, typical seasonality and destocking in volumes. The company also expects further cost savings, offset by timing of maintenance spending, including February scheduled blast furnace maintenance stoppage. It anticipates continued market and volume growth, with competitive pressures on margins in the given period.