BlueScope Steel Says Second Half Profit Could Hit $447 Million

May 12, 2008 2:09 p.m. EST

Sydney, Australia (AHN) - High market prices and brisk demand are what's keeping Australia's largest steelmaker, BlueScope Steel Ltd., in line with projections for bigger earnings in the second half of the fiscal year, officials said Monday.

Australia's Herald Sun says BlueScope is expecting to post net profits of about $447 million USD ($474 million AUD) in June, up from the first half's $305 million AUD.

"The strong earnings improvement in the second half has been driven by very strong global steel prices," BlueScope CEO Paul O'Malley told the Herald Sun, adding, "If steel prices hold then we'll have a good start to fiscal year 09."

O'Malley said the earnings momentum seen in the second half was likely to continue into the fiscal year to June 2009.

BlueScope also notes that it is ahead of schedule to deliver a $200 million AUD working capital reduction by June 2009. The newspaper said the steel maker will achieve half of that figure by the end of next month.