Australian steelmaker BlueScope Steel has announced its preliminary unaudited financial results for the six months ended December 31, 2015. Accordingly, BlueScope expects its preliminary unaudited underlying earnings before interest and tax (EBIT) in the given period to be around $230 million. This is above the prior guidance of approximately $180 million. The stronger performance has been driven largely by earlier delivery of cost reductions, growth in Australian domestic dispatches and better margins.
As part of finalizing its accounts for the half, the company is reviewing the carrying value of its assets and anticipates it will recognize an accounting carrying value write-up of approximately $700 million of the existing 50 percent interest in the North Star BlueScope Steel joint venture, brought about by the requirement to revalue this asset when 100 percent ownership was acquired at the end of October 2015; and an impairment charge of approximately $570 million, comprised of $190 million in the Australian Steel Products segment, $350 million in its New Zealand and Pacific Steel segment and $30 million carried forward tax assets.