On February 16, the second largest Australian steelmaker OneSteel announced its financial results for the first half of the financial year 2009-2010 (FY 2009-10) ended on December 31, reporting soft trading conditions during the first half as the impact of the global financial crisis continued to be felt.
OneSteel posted a net income of AU$117 million ($104 million) in the first half of FY 2009-10, dropping 49 percent compared with a profit of AU$228 million in the same period of FY 2008-09. When the same periods are compared, the company's sales revenues fell 28 percent from AU$4.1 billion to AU$3 billion ($2.7 billion). OneSteel's earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$298 million ($266.5 million) in the first half of FY 2009-10 was 40 percent down from AU$499 million in the corresponding period of the previous financial year. The company's net debt declined from AU$2.7 billion in the first half of FY 2008-09 to AU$970 billion ($940 million) in the first half of FY 2009-10.
The company report said on the outlook for 2010 that economic indicators show that the recessionary trading conditions have ended and a period of growth is ahead. "Market conditions in the short term are expected to be difficult but will gradually improve as the second half progresses," the report said.