BlueScope Steel posted a small profit in the six months to December 31 and, as a result, shares in the company have surged.
As The Australian reports, BlueScope’s first half profit was $3.7 million. Though small, this represented a marked contrast to the $23.8 million loss the company posted in the first half of 2012.
In addition, underlying profit in the half was $49.1 million. The group said that it expected a similar sized underlying profit in the second half of the year.
The SMH reports that, in mid-morning trading, BlueScope Steel shares were ahead 9.5 per cent at $6.43. This was their highest level since mid-2011.
The company has signalled firming domestic demand, and also buoyancy in North America and selected Asian countries. However, it is also expecting slowing in China due to the fact that it is moving from high growth.
Chief executive, Mr Paul O'Malley described the result as evidence the company is “...certainly on the road to recovery.''