Australian steel company BlueScope Steel has stated that its unaudited first quarter results show a very strong performance with underlying net profit after tax of approximately AU$430 million.
Commenting on the results, BlueScope Steel Managing Director and CEO Paul O'Malley said, "BlueScope Steel has had a very good start to FY09 due to strong global steel demand and prices. In this opening quarter, the business outperformed the first half result of last year, despite increases in iron ore, coal and scrap prices. However, current economic conditions suggest a challenging second half."
Mr. O' Malley also revealed the company's expansion plans by saying, "Our confidence in our business means that in the second half of FY09 we will embark on the Blast Furnace No. 5 reline and sinter plant upgrade projects at Port Kembla Steelworks. These investments will position our company to take best advantage of the eventual improvement in economic conditions. While these two major engineering projects will see a planned reduction in production in the second half, they will deliver cost and volume benefits upon completion."