IT HAS been another strong year for Australian metal product manufacturers, with the global steel market driven by demand from China, the US and Europe, despite persistently higher raw material costs.
Bluescope Steel has continued to be a standout player in the sector, doubling its profit for FY2007 to $686m, with a positive contribution to earnings from the sale of its Smorgon Steel shares. BlueScope Steel announced at its AGM in November that FY08 has started well for the company, with strong operational performances across all businesses.
“The first four months of this year has been in line with expectation and is consistent with our comments in August at the annual results presentation.
With new CEO and MD Paul O’Malley at the helm, BlueScope Steel said the recent organisation restructure indicates the additional focus O’Malley will place on Asia and, in particular, China.
At his first AGM as MD and CEO, O’Malley outlined the key variables that could affect the company’s performance.
“Factors that could have a bearing on our second half results are the potential for stronger global steel prices and improving domestic sales versus the continued strong Australian dollar and a return to higher zinc costs.”
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