AAP Finance

BlueScope Steel raises H2 earnings guidance by $220m

By AAP Newswire

Apr 24, 2023

A steeworks. — Bluescope Steel has upgraded its earnings guidance for the second half of the financial year. -AAP Image

BlueScope Steel has upped its second-half earnings expectations by $220 million, thanks in large part to its Ohio mini-mill.

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It now expects to make $700m to $770m in underlying earnings before interest and tax in the six months ending June 30, compared to its previous guidance of $480m to $550m.

CEO Mark Vassella said the improvement reflected the dedication of staff and the loyalty of customers.

"Whilst we have been able to benefit from improved prices and spreads, particularly in the US, the improved outlook also demonstrates the strength and resilience of operating a diverse portfolio of high-quality assets."

BlueScope's North Star mini-mill - a facility that produces steel from scrap metal - is been the main contributor to its earnings upgrade, with its hot rolled steel coils fetching better-than-expected prices in the US.

Steel prices in Australia have also been stronger than expected.

Bluescope's next set of earnings results will be released on August 21.

At 2.33pm AEST, BlueScope shares were down 0.1 per cent to $20.67.

By AAP Newswire

Australian Associated Press