Australian steelmaker BlueScope Steel has announced that it has withdrawn its earnings guidance of A$302.4 million for the second half of the financial year 2019-20 (ends June 30) due to the impact of the coronavirus. BlueScope Steel said that the performance of the company in the second half of FY 2019-20 so far has been in line with its expectations.
"Given this unprecedented environment and economic uncertainty, BlueScope believes it is prudent to withdraw its outlook for the second half of 2019-20," the company said.
Bluescope stated that demand in Australia had remained strong so far, owing to building sector and distribution channel demand, while the North Star volumes had remained unchanged. The company’s China operations have showed a recovery until now, according to BlueScope. However, it had anticipated the operations in China would show no profit in the second half of the financial year.
The company said that it could operate in this challenging environment owing to its strong balance sheet and its equipment. "We are in a strong position to withstand these uncertain times and for when the virus risk recedes and economies rebound," said Mark Vassella, managing director and CEO of BlueScope.