OneSteel to cut jobs after posting net loss for H1 FY 2011-12

The second largest Australian steelmaker OneSteel has announced its financial results for the first half ended December 31 of the financial year 2011-12, posting a net loss for the period.
 
OneSteel registered a net loss of A$74 million in the first half, compared to a net loss of A$116 million in the first half of the previous financial year. The company's sales revenues increased by 15 percent year on year to A$3.79 billion in the first half.
 
According to OneSteel's statement, the company is considering cutting jobs after posting a net loss for the first six months. OneSteel expects to save A$90 million by cutting 430 jobs in the next four months. OneSteel also stated that it is proceeding with the export sales capacity expansion at Whyalla in South Australia to 12 million mt per year.
 
Regarding the near-term outlook, OneSteel expects that in the mining business demand from China will remain strong, supporting higher prices.