Manufacturing News

Aggressive cost-cutting to continue as Bluescope profit more than doubles

Bluescope Steel’s half-year profit has more than doubled to $200.1 million, with CEO Paul O’Malley saying the company’s “relentless” cost-cutting will continue in the second half.

According to The Australian Financial Review, revenue for the final six months of 2015 was $4.43 billion, up from $4.33 billion in the final six months of 2014.

AAP reports that earnings before interest and tax were up 35 per cent to $230.1 million.

Last November 500 jobs were shed at the company’s Port Kembla operation and workers accepted a three-year pay freeze. The NSW government also granted the steel company $60 million in payroll tax exemptions.

The pay freeze agreement was a big part of the cost reduction, and the focus on reducing costs in Australia and New Zealand was paying off, according to CEO Paul O’Malley.

“Our relentless focus on cost reductions in Australia must continue,” he said, according to Business Insider.

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