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Australia's Bluescope Steel drops after first-half earnings outlook downgrade

Shares of Bluescope Steel on Tuesday were on track for their worst day in more than 20 months after the Australian manufacturer slashed its underlying profits forecast for the very first half of fiscal 2025 due to a lacklustre international steel market.

Shares of Bluescope were down as much as 7.8% at A$ 19.54, as of 2323 GMT, and on track for their worst day given that February 2023, if losses hold. The company's stock touched levels not seen since early September this year, while the wider benchmark index was up 0.4%.

Bluescope now expects its hidden revenues before interest and tax (EBIT) between A$ 270 million ($ 177.63. million) to A$ 310 million, lower than its prior forecast of A$ 350. million to A$ 420 million.

The worldwide steel market has actually been affected by record levels. of steel exports from China, greater costs in addition to uncertainty. relating to the timing of more U.S. rate cuts and the. governmental election, the business stated in statement.

Whilst these pressures are impacting efficiency in the. near-term, we are positive in BlueScope's strength,. underpinned by a robust balance sheet, varied company. model and strong operating disciplines, Chief Executive and. Handling Director Mark Vassella said.

For the very first half of fiscal 2025, the company now expects. its North American operations to provide numbers slightly lower. than half of what were reported in the 2nd half of fiscal. 2024.

The business said it aims for an enhancement in its. annualised revenues by targeting around A$ 200 million in. cost-saving and productivity efforts throughout the group.

(source: Reuters)