Australian steelmaker BlueScope Steel has announced that it expects its preliminary unaudited underlying earnings before interest and tax (EBIT) for the six months ending June 30 to be around $270 million. This is above the prior guidance of approximately $209 million.
According to BlueScope, the stronger performance has been driven largely by earlier delivery of targeted cost reductions, higher steel and iron ore prices, better than anticipated Australian domestic dispatches and better than expected margins in the international businesses. However, the company also stated that expectations are subject to market conditions.
BlueScope also confirmed that the south electric arc furnace (EAF) at its North Star plant in Ohio in the US has resumed full production following repairs after the explosion which occurred at the plant on May 7. The cost is in line with expectations provided on May 9 of $5 million.