The strong financial performance of Australia’s leading steelmaker BlueScope Steel Ltd (ASX: BSL) may be even stronger for the June half year.
The company, which owns New Zealand Steel and operations in North America, said the February-provided guidance was for underlying earnings before interest and tax (EBIT) of $A606 million.
Yesterday this guidance was lifted to a target of about $A680 M ($NZ740.8 M).
Managing director Mark Vassella said that following strong steel spreads in North America, this increase was mainly due to the performance of the North Star mini mill in Ohio.
Other contributing factors were:
• Australian steel products had performed “moderately better” than prior expectations including higher margins on export coke sales.
• There were lower contributions for the ASEAN building products business through a softness in the projects segment. This was partly offset by stronger margins in North America.
BlueScope’s financial results for the half year to June 30 will be released on August 13.
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