BlueScope Steel Ltd (ASX:BSL) has widened its first half loss to $55 million, from a loss of $28 million a year before, as the company battled with a stronger Australian dollar, higher materials costs and lower demand in the Australian market.
In the six months to 31 December the steelmaker also lodged a $77 million write down of goodwill for its Bluescope Distribution business and a $68 million write back for its Coated China assets.
Managing director and CEO Paul O’Malley says the result is in line with the company’s earlier guidance and reflects the developed world steel industry performing near the bottom of its cycle.
Mr O’Malley also adds that there are signs of stronger industrial activity in the developed world though apart from China, steel supply remains in an oversupply position.
Bluescope has declared a fully franked interim dividend of two cents per share.
In the year to 30 June 2010, BlueScope Steel recorded a net profit of $139 million, rebounding from a loss of $66.8 million in 2009.
