BlueScope shares dive on earnings guidance downgrade
Make us a preferred source
Make us a preferred source on Google
More news: BluesScope shares tumbled at market open on the ASX after the steelmaker slashed its first-half earnings guidance amid continued softness in the global steel industry.
BlueScope shares were down 4.5% to $20.24.
BlueScope lowers guidance on global steel softness
The news: Australia's largest steelmaker BlueScope has revised down its first-half earnings guidance, citing "challenging operating conditions" across the global steel industry.
The numbers: BlueScope now expects first-half EBIT to be in the range of $270 million to $310 million, down from its prior guidance range of $350 million to $420 million.
The context: BlueScope said its revised outlook is driven by "challenging operating conditions" facing the company and the broader global steel industry.
It noted that challenges include continued softness in East Asian spreads off the back of record levels of Chinese steel exports, ongoing cost inflation, and "a period of pause and uncertainty" in the US ahead of the presidential election and the timing of further rate cuts.
The Melbourne-based steelmaker said it expects to deliver a first-half FY25 result in North America "slightly below half" of its second-half FY24 result. Its US-based North Star business is now expected to deliver a result "slightly below one third" of its total in the previous six months.
In Australia, BlueScope's Australian Steel Products business is forecast to deliver a first-half EBIT "around two thirds" of its second-half total in FY24.
Its New Zealand and Asian segments are expected to deliver results in-line with the prior six months.
BlueScope said it is now targeting a further improvement in annualised earnings through the identification and delivery of $200 million of cost and productivity initiatives across the group.
The source: ASX announcement
