On August 17, the second largest Australian steelmaker OneSteel announced its financial results for the financial year 2009-2010 (FY 2009-10) ended on June 30. OneSteel has reported that its profit performance for the year was impacted by generally relatively weak markets due to the continuing effects of the financial crisis, but overall the result was acceptable given the challenging external environment.
OneSteel posted a net profit of AU$258 million ($232.2 million) in FY 2009-10, up 12 percent compared with a net profit of AU$230 million in FY 2008-09. When the same periods are compared, the company's sales revenues fell 14 percent from AU$7.24 billion to AU$6.2 billion ($5.58 billion). OneSteel's earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$638 million ($574.17 million) in FY 2009-10 was seven percent higher than the figure of AU$597 million in the corresponding period of the previous financial year. The company's net debt declined from AU$1.22 billion in FY 2008-09 to AU$964 billion ($867.57 million) in FY 2009-10.
"The recovery through most of the year has been off a very low base, and activity levels in many of our steel markets are still weak and well below pre-crisis levels," managing director and chief executive officer Geoff Plummer said, pointing out that the net profit included a strong contribution from the company's iron ore segment which saw rocketing prices.