Construction boom boosts Australia's OneSteel

Construction boom boosts Australia's OneSteel

Australia's second largest steelmaker OneSteel Ltd. reported a better than expected 36% gain in profits for fiscal year 2004 based on a booming domestic construction sector in Australia. The long products steelmaker and distributor reported a net profit of A$127.9 million ($91.8 million) for the year ended June 30, 2004 and an after-tax profit of A$108.1 million ($77.6 million), beating the market expectations of A$101 million ($72.5 million). OneSteel's CEO Bob Every attributed the company's increase in profit to the expansion of Australia's construction sector including major road and tunneling projects around Sydney as well as office block developments and mining construction projects. Every also believes that the planned infrastructure and engineering projects will continue to keep up the demand for OneSteel's structural and reinforcing steel products.