Home > USA up, China down in BlueScope results

USA up, China down in BlueScope results

article image

BlueScope CEO Paul O’Malley has said there are positive signs for his business in the USA and in the Australian residential housing market, but was cautious when Chinese growth came up.

As reported yesterday, BlueScope reported a small profit of $3.7 million in its half-year results to December 31, and an underlying profit of $49.1 million.

The Australian notes the extraordinary items dragging the result down were made up largely due to restructuring and redundancy costs, with 1,000 redundancies at BlueScope’s Port Kembla site.

Fairfax reports that volumes and margins had increased in the half-year, and residential construction in Australia had improved, especially in NSW and south-east Queensland.

“We're certainly on the road to recovery,” said the CEO.

He also noted the upturn in economic activity in the US has been good for BlueScope.

"We are now starting to build more buildings than we have in the past five years for customers that will operate manufacturing facilities," he said, adding that he believed Australia could learn from the US’s gas and labour policy settings.

However, the news from China had not been great for BlueScope.

“We didn’t expect the Chinese slowdown to be quite as dramatic,” Bloomberg reports O’Malley as saying elsewhere.

“In building activity, in our space in particular, we are seeing negative growth at the moment.”

Newsletter sign-up

The latest products and news delivered to your inbox