Good signs in residential construction: BluScope

BlueScope Steel reaffirmed its first half guidance for the 2015
financial year at its AGM yesterday and mentioned that residential construction
in Australia was encouraging.

Business Spectator reports that chairman Graham Kraehe told
investors that major turnaround initiatives of recent years had begun to pay
off. The company’s first half net profit after tax for the 2015 financial year
would be similar to the second half of the 2014 fiscal year, which was $89.6
million.

“Other
pleasing developments for the year were the $246 million lift in operating cash
flow and strong balance sheet with 5.5 per cent gearing at June 30,” said the chairman in a statement.

There
was strong demand in new residential developments in Australia, as well as
south-east Asian and US trade.

Kraehe mentioned that positive signs existed around initiatives
including Zincalume and updates to the Colorbond line, and the integration of
the acquired Fielders, Orrcon and Arrium sheet and coil businesses.

Image: http://www.wavefm.com.au/