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.
Read more at http://www.ferret.com.au/articles/news/good-signs-in-residential-construction-bluscope-n2519051#3xL0Bb65c9a2fEq4.99