Metals producer Bluescope Steel has reported a net profit after tax (NPAT) of $126 million for financial 2010, a turnaround of $192 million from the previous year's loss, on the back of a strong performance in Asia.
The company reported a five cents a share full franked ordinary dividend.
Bluescope chief executive Paul O'Malley said the company was pleased with the overall performance given the business environment in fiscal 2010 and the financial turbulence the previous year.
- Net profit after tax of $126 million
- Five cents a share fully franked dividend
- Gains from stronger performance in Asia
In early trade, shares in Bluescope rose as much as 12 cents, or 5.2 per cent, to $2.44.
"We delivered an outstanding improvement in our Asian businesses, including record profits in China, Indonesia, Malaysia and Vietnam," Mr O'Malley said in a statement.
"We also achieved a significant reduction in the company's permanent cost base.
"Also encouraging was increasing demand in Australia, strong export sales and good earnings results both in New Zealand and at North Star BlueScope Steel, our steelmaking joint venture in the United States."
Mr O'Malley said the highlights for the year was the overall turnaround in profit, the $340 million cut in permanent costs on financial year 2008, the $116 million lift in earnings before interest and tax (EBIT) in its Asian businesses against $21 million loss the previous year and an improved balance sheet.
Mr O’Malley said Bluescope expected an ongoing improvement in its Asian operations in the first half of fiscal 2011 and continue to benefit from cost cuts during the previous year.
‘‘We are seeing a modest real-time increase in export steel prices in our region for Q2 delivery,’’ he said.
‘‘Overall, we are planning for significantly improved market conditions over the medium to long term, despite the short term concerns.
‘‘Over the last couple of years we have strengthened the balance sheet and improved the effectiveness of the global BlueScope operations particularly the reduced cost base and improved productivity.’’
Shares in Bluescope closed up six cents at $2.32 on Friday.
AAP