On February 15, the largest Australian steelmaker BlueScope announced its financial results for the first half of the financial year 2009-2010 (FY 2009-10) ended on December 31, reporting reduced loss and predicting a small profit at the end of the year.
BlueScope posted a net loss of AU$28.5 million ($25 million) in the first half of FY 2009-10, compared with a profit of AU$407 million in the same period of FY 2008-09. When the same periods are compared, the company's sales revenues fell 33 percent from AU$6.2 billion to AU$4.1 billion ($3.6 billion). BlueScope's earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$154 million ($136.6 million) in the first half of FY 2009-10 was 82 percent down from AU$857 million in the corresponding period of the previous financial year. The company's net debt declined from AU$2.64 billion in the first half of FY 2008-09 to AU$734 million ($651.3 million) in the first half of FY 2009-10.
BlueScope managing director Paul O'Malley stated that the company expects a small profit at the end of the current financial year. "After a tough period across all our businesses, we are pleased to report a more positive trend in demand and pricing and expect a profit in the second half," he said.