Monday, February 20, 2012

Bluescope boss calls company "bipolar" as he posts a $530 million half year loss

Bluescope Steel has reported a loss of $530 million for the first half of the financial year due to restructuring costs and weak trading conditions.

The result was nearly 10 times the $55 million loss posted in the same period last year, bu
t includes $260 million for restructuring.

Here's my analysis broadcast on The World Today.

Read the story on ABC News Online.

Last August, the steelmaker posted a full-year loss of $1 billion and slashed a total of 1,000 jobs at its Port Kembla steelworks in New South Wales and its Western Port steel mill in Victoria.

Chief executive Paul O'Malley says the company expects to record a much smaller loss this half as the benefits of the restructure flow through to the bottom line.

"Really the story is of a bipolar company in many respects," Mr O'Malley said.

"The Australian business is really challenged but we have taken significant steps to restructure and improve that performance, and as I mentioned we'll start to see improvements - material improvements - in that business performance in the coming months."

Bluescope Steel shares fell as much as eight percent at one point.

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