SYDNEY: Australia's BlueScope Steel Monday posted a net loss of Aus$530 million (US$570.7 million) for the first half of the financial year, but said it was laying the foundation for a return to profitability.
In August the steelmaker revealed a $1.05 billion full year loss and announced it would cut more than 1,000 jobs and shut down its Australian export business as it struggled under the soaring Australian dollar.
The company said the result for the six months to December 31 was much higher than the $55 million loss posted for the same period the previous year but included significant one-off restructuring costs of some $260 million.
BlueScope chief executive Paul O'Malley said the figures "demonstrated delivery of our improvement plan and was in line with market guidance."
"Since the onset of the global financial crisis, BlueScope has acted to overcome the effects of poor global economic conditions and steel industry overcapacity and set the foundation for future business improvement," he said.
O'Malley said the operational restructure, with associated plant closures in Australia, significantly reduced exposure to the loss-making export market.
The chief executive said he expected a slightly lower net loss in the second half of the financial year, which runs to June 30, subject to foreign exchange rates and market conditions.
He said he expected a return to a profitable underlying run rate by the end of this fiscal year.
BlueScope said that trading conditions were improving but that the meteoric rise of the Australian dollar was still hurting manufacturing.
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