North Star BlueScope First Half 2015 Results

BlueScope Steel reported EBIT of AUD$67.1 million ($52.4 million) for its portion of North Star BlueScope in the first half of FY 2015, up from AUD$48.7 million ($38 million) to 1H FY 2014 and AUD$55.9 million ($43.6 million) in 2H FY 2104. The increase in EBIT was largely due to higher margin spreads, driven by higher selling prices and volumes, lower scrap costs, and a favorable exchange rate from AUD to USD. This was slightly offset by higher maintenance costs and utility rates.

BlueScope steel expects growth in North Star’s key markets of automotive and construction. The decline in OCTG demand has had minimal impact on North Star other than general lower HRC prices. The company will continue plans to look at ways to enhance productivity.

The North Star BlueScope Steel is a 50-50 venture between Australian steel producer BlueScope Steel Ltd. and Minnesota based Cargill, Inc. The company is located in Delta, Ohio and produces hot rolled coil by electric arc furnace. North Star sells 80 percent of its production in the Midwest to an end market mix of 45 percent automotive, 25 percent construction, 10 percent agricultural and 20 percent manufacturing/industrial applications.