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Australian steel leader BlueScope sees loss for year

Industry leader BlueScope Steel Ltd. expects to report a net loss for the financial year ending June 30, the company said in a statement Thursday.

Now struggling with the effects of a surging Australian dollar on export revenue, weaker prices for its products overseas, and a decline in steel demand at home, BlueScope said a "small" net loss after tax is likely in its second-half operations.

BlueScope also incurred a net loss of A$55 million (US$58.3 million) in the first half.

"It is now expected the second-half reported earnings for FY 2011 will result in a small reported net loss after tax," said a statement issued by BlueScope from its Melbourne head office.

The projected net loss, however, does not take into account "any realizable value adjustments which, if required, will be determined around the time of releasing the FY2011 financial results in August 2011," the company said.

The BlueScope alert came on the heels of a disclosure from OneSteel about a possible 15 percent decline in net profit to some $230 million compared to previous projections of $270 million.

OneSteel's projected profit for the year ending June 2011 also represents a drop from the previous year's actual profit of $258 million.

BlueScope pointed out that global steel prices fell in April even as demand in the domestic markets had been "weak."

The company said its Asian and North American businesses had "performed in line with expectations" when guidance was given in February, when it said it expected a break-even net profit for the second half of the financial year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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