BHP Steel announced its first half year net profit

BHP Steel announced its first half year net profit

Back in early July 2002, The Federal Court of Australia decided the company's steel division to be parted as of July 15, 2002 and listed as a seperate entity as BHP Steel, as a result of Australian steelmaker BHP Billiton's desicion to leave the steel industry. According to the Melbourne based BHP Steel, improvements seen in the first half year starting from 1 July is a consequence of high steel prices in the international markets with stronger domestic demand for all products and higher slab export volumes. All these factors played an important role for the company to compensate its losses derived from currency exchange, restructuring costs and higher raw material costs. Hence, the company reported that in its first half year they have recorded a net profit of A$242 million (approx. US$148.8 million), raised revenues by 13% to A$2.59 billion. Besides EBITDA increased over 50%, when compared to the period while it was operating under BHP Billiton and reached to A$464 million from A$221 million. Despite the fact that unfavorable exchange rates, maintenance plans, increasing scrap prices and decreasing hot rolled coil prices in Midwest of US might negatively effect the company's second half performance, it is still expected that a A$400 million, plus net profit can be reported for the second half of the financial year ending in June 30, 2003.