BlueScope Steel saw revenue fall by 7% year-over-year last half, with earnings per share plummeting by 58%.
Its sales revenue was A$7.91 billion, well below last year’s $8.54 billion, the company reported in its half-yearly results.
"The 7% decrease in sales revenue from continuing operations was primarily due to lower selling prices, partially offset by higher despatch volumes,” according to BlueScope. “In the medium term, BlueScope is working to realise ~A$500 million of annual incremental earnings from growth initiatives across the Group.”
Reported earnings per share were 40.8 cps, compared with 97.3 year-over-year. Underlying EBITDA was $658.5 million, falling 38%.
Its gross operating cash flow was A$660.4 million, down 32% year-over-year. Net assets were A$11.81 billion, increasing by $525 million from the previous fiscal half.
BlueScope’s share price rose 4% to reach a two-month high last week, following United States President Donald Trump’s announcement of a 25% tariff on all steel imports.
BlueScope operates five subsidiaries in North America, including its North Star steel mill in Ohio. Its North Star and Buildings and Coated Products businesses saw the second and third-highest revenue of any division last half, after Australian Steel Products.
The company also sends more than 200,000 tonnes of semi-processed steel to the U.S.’ west coast each year, and is Australia’s largest exporter of steel to the U.S.. While Trump briefly considered a tariff exemption for Australia, U.S. officials later said this would not occur.
Its North America sales revenue dropped by 6% year-over-year last half. “The $204 million decrease in sales revenue was primarily due to lower selling prices, partially offset by higher despatches,” according to BlueScope.
The company projects performance in North America to increase by around one third in the second half of the fiscal year, and expects North Star’s results to more than double.
Its overall guidance predicts underlying EBIT in the fiscal year’s second half will be from A$360 million to $430 million.
BlueScope’s share price (ASX: BSL) closed at A$22.35 on Friday, up from its previous close at $21.99. Its market capitalisation is $9.8 billion.
