Australia's BlueScope hit by commodity prices

Australian steelmaker BlueScope reduced its 2006 earnings forecast and will cut jobs and shut two plants due to the soaring prices for raw materials. The company will close its loss-making tin mill at Port Kembala after a 19 percent rise in iron ore prices effective from July 1. BlueScope will also close its manufacturing operations in Taiwan and eliminate approximately 250 management and staff jobs across all operations. BlueScope said 2006 earnings per share would be at the bottom end of its forecast range of 65 to 75 cents. The one-off restructuring costs will be about A$150 million to A$200 million ($110 to $146 million) before tax.