Australian steelmaker BlueScope Steel has posted a net profit of AU$353.8 million for the financial year 2015-16 ended on June 30, compared to a net profit of AU$136.3 million in the previous financial year.
BlueScope's sales revenues increased by seven percent year on year to AU$9.2 billion, due to 100 percent ownership of North Star from the end of October 2015, favorable translation impacts of a weaker Australian dollar exchange rate and stronger domestic demand within the Australian Steel Products (ASP) segment. Meanwhile, in the financial year 2015-16, the company’s underlying EBIT increased by 89 percent year on year to AU$570.5 million, driven by company initiatives, despite the weakest macro conditions since 2002.
BlueScope stated that for the first half of the financial year 2016-17 it expects its underlying EBIT to be around 50 percent higher than the underlying EBIT of AU$340.4 million recorded in the second half of the financial year 2015-16. The company also expects underlying net finance costs in the financial year 2016-17 to be lower than the second half of the previous financial year due to lower average borrowings, a slightly higher underlying tax rate and profit attributable to non-controlling interests similar to the second half of the previous year.