REPORTING SEASON: Bluescope Steel Limited (BSL)

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Figure 1: Bluescope Steel Limited 12 month chart

 

BlueScope Steel (BSL): higher margins and sales volumes boost results.

·         Steel manufacturer BlueScope steel (BSL) lifted its underlying profit over 2014, helped by higher margins and sales volumes lifting earnings (EBIT) but the firms underlying profit was hit by restructuring costs.

·         Sales revenue increased by 10% to $7,981.1Million as sales volumes, especially in Australia, increased with higher iron sands prices and favourable foreign exchange translation added to BSL’s gains.

·         The result was heavily impacted by restructure, redundancy, business stgelopment and acquisition costs totalling $87Million and the company also paid out $55Million on restructuring cost.

·         Underlying EBIT came in at $249.7Million, up $175.6Million over the year.

·         Blue Scope’s guidance was very underwhelming, saying “We expect first half FY2015 Underlying NPAT to be similar to that reported in the second half FY2014 – subject to spread, FX and market conditions.”

·         BSL will not pay a dividend to shareholders as expected by the market.

 

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Juliana Roadley, Market Analyst,