BHP Steel posted A$242 million profit for the first half

BHP Steel posted A$242 million profit for the first half

BHP Steel Limited, region's leading flat steel products business, announced that its operations in Asia recorded a profit of A$242 million for the first half which is A$12 million lower than the full-year profit forecast at the time of the demerger from BHP Billiton in summer 2002, basically due to recovered steel prices, sales volumes and productivity. The company CEO Kirby Adams stated that BHP Steel's Asian operations will surely surpass a full-year profit of A$400 million after tax, forcasted originally in February 2002, depending on the fact that operations in Asia made A$47 million in EBIT (earnings before interest and tax) that is equivalent to 14% of group earnings for the six months to December 2002. It is commonly believed that contribution from these operations to the group's earnings will keep on increasing as Asia is seen as the key growth region for BHP Steel. Additionally, BHP Steel announced that group is going to expand its operations in Asia due to strong demand from the Australian market and continued growth observed especially in building and construction sector in Asia. According to these expansion plans; painting capacity in Indonesia and production capacity of its painting line in Thailand will be increased and two new rolling plants will be commenced all with minimum capital cost and construction of a coating plant in Vietnam with a production capacity of 125'000 tons will be invested.