BlueScope has announced an $84 million net loss after tax for the 2012/2013 financial – a $960 million turnaround in financial performance compared to 2011/2012.
The steel maker recorded an underlying result of $30 million net profit after tax, a $267 million improvement on the loss it posted for the previous 12 months.
BlueScope Chairman, Graham Kraehe AO said the Board was pleased with the financial recovery, and expects the business will deliver a profitable first half result for the current financial year even though the outlook for domestic demand remains uncertain.
Mr Kraehe said management initiatives and internal restructures across the entire company had helped improve the financial turnaround.
BlueScope’s financial position has been strengthened and the Company is well placed to benefit from any recovery in the Australian economy and has the ability to grow in key overseas markets,” Mr Kraehe said.
BlueScope’s Managing Director and CEO, Mr Paul O’Malley added: “Despite the ongoing difficult trading conditions in the domestic economy and the global steel sector overall, we are pleased with the progress of the Company’s turnaround.”
BlueScope has also announced it has agreed to purchase pipe and tube manufacturer and distributor Orrcon and building products company Fielders, from Hills Holdings Limited.
The steel maker will buy Orrcon and Fielders for a combined price of $87.5 million and expects to incur net integration costs of $15 million.
Commenting on the acquisitions, Mr O’Malley, said “These businesses are close to BlueScope’s core Australian operations. Our objective is to improve the efficiency with which we can serve Australian customers by further lowering costs through the integration of these businesses with our existing operations.”
