BlueScope posts AU$55 million loss in H1 FY 2010-11

Australian steelmaker BlueScope Steel has posted a net loss of AU$55 million in the first half of FY 2010-11, compared with a net loss of AU$28 million a year ago, due to pressure from lower domestic demand, a rising Australian dollar and raw material costs that far outweighed slight improvements in steel prices.
 
When the same periods are compared, BlueScope's sales revenues increased 13 percent from AU$4.1 billion to AU$4.62 billion, while its reported earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$127 million in H1 FY 2010-11 was 18 percent down from AU$154 million in the same period last eyar.
 
"The three key drivers which affected trading in the first half FY 2011 will continue to be strong influences in the second half," BlueScope Steel's managing director and CEO Paul O'Malley said, adding that the second half will largely depend upon steel and raw material prices and that BlueScope is expecting to break even, which means a net full-year loss.
 
However, BlueScope said it is encouraged by its upside earnings leverage to a number of factors, including the current high steel price environment, the recovery in developed economies, principally the US, and the continuing strong performance in Asia.