Strong demand drives OneSteel's improved profits

Strong demand drives OneSteel’s improved profits

Australian steel producer and distributor OneSteel Ltd posted improved interim profits on the back of both strong demand and price hikes that the company implemented to offset rising raw material costs. The company posted an interim profit of AUD 57.9 million (US$45.9 million), up 27.3% year-on-year. OneSteel expects to post net profit of AUD 110-125 million for the 2004-05 fiscal year. In the six-month period ended on December 31, 2004, domestic sales revenue increased to AUD 1.82 billion, up 19.7%. Export sales revenue increased to AUD 70.4 million, up 52% year-on-year. Company officials indicated that although they expect raw material costs to rise further, they are not planning any price hikes in the short-run.