BlueScope Steel Revised H1 FY25 Earnings Guidance

SEATTLE (Scrap Monster): BlueScope Steel provided an update on its earnings outlook for the first half of FY2025. For the half-year period, the company now anticipates that its underlying earnings before interest and tax (EBIT) will fall between $270 million and $310 million. This falls short of the $350 million to $420 million guidance range that was previously disclosed.

The updated outlook, according to BlueScope's Managing Director and CEO Mark Vassella, is a reaction to the difficult operating conditions that the global steel sector is currently confronting. These include a moment of pause and uncertainty in the US, the persistent cost inflation, and the continued softness of East Asian spreads.

Vassella went on to say that the aforementioned elements can have an immediate effect on the business's performance. But he said he was certain the business could strike a balance between short-term success and long-term, sustainable growth and profits.

According to BlueScope, the North American region will provide results that are just under half of those from the second half of FY2024. Australian operations are also expected to produce an EBIT in the first half of FY2025 that is roughly two-thirds of that in the second half of FY2024. The domestic economy of New Zealand is still fragile, which has led to a soft environment for pricing and demand. According to a firm news release, the weakening domestic economy has also affected Chinese business.

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