Steel Mills
North Star is a Winner for BlueScope Steel
Written by Sandy Williams
August 20, 2019
North Star BlueScope was a key contributor to FY 2019 results for Australian parent BlueScope Steel. Revenue at North Star totaled $916 million in the first half of the fiscal year and $784 million in the second half. Total FY 2019 revenue was $1.7 billion, up from $1.49 billion in FY 2018.
North Star BlueScope’s second-half shipments increased to 1,073,900 metric tons from 1,036,400 tons in the first half of FY 2019. Shipments totaled 2.11 million MT for the fiscal year, a slight increase from FY 2018.
North Star continued to operate at full capacity in FY 2019.
Looking ahead, the company expects benchmark spreads in the U.S. to soften through the first half of FY 2020 to a level approximately $90 per ton lower than 2H FY 2019. Volumes are expected to decline due to normal seasonality, while a modest increase is forecast for consumables, including electrodes.
The big news for North Star was the green lighting of a $700 million expansion that will include a third EAF and second caster at the mill in Delta, Ohio, which will increase capacity by 936,000 net tons. Initial production is anticipated for late 2021.
BlueScope Steel reported a FY 2019 net profit after tax of AUS $1.015 billion (U.S. $688 million).
“Underlying EBIT for the year was $1,348.3 million, up 6 per cent or $79 million over FY 2018. This was our third successive full year with underlying EBIT above $1.1 billion,” said BlueScope Managing Director and CEO Mark Vassella. “Despite some softening in commodity steel spreads and domestic volumes in the second half, in FY 2019 BlueScope delivered another very good result.”
Underlying EBIT rose 52 percent year-over-year at North Star, but fell at all other divisions of BlueScope in FY 2019. EBIT declines of 9 percent were reported at Australian Steel and 27 percent at Building Products Asia & North America. EBIT dropped 28 percent at both Buildings North America and New Zealand & Pacific Steel.
NOTE: AUS $1.00 = U.S. $.68; NorthStar BlueScope amounts in U.S. dollars
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...
Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.