BlueScope shares are getting hammered on the ASX despite Australia’s largest steelmaker announcing improved first half results.
The company says it’s benefiting from good Australian residential building activity and a cheap dollar against the US dollar.
Bluescope expects full year earnings to be 20% higher.
However, the company told the market that recent falls in Asian and US spot steel prices could compress margins in Australia.
And this could mean a weaker second half.
BlueScope announced an underlying profit up 62% to $79.6 million for the six months to the end of December. Net profit after tax was $92.7 million, an $89 million improvement.
The company announced a fully franked interim dividend of three cents.
The share price is down more than 8% to $5.08.