Australian steel producer BlueScope expects strong financial results for the second half of FY2020 ending June 30.
“Some BlueScope businesses have been impacted by government mandated and customer closures, but in general business conditions have been better than expected – driven primarily by continuing building and construction demand in key markets,” said the company in a business update.
U.S. division North Star BlueScope saw weak demand in the second half due to auto shutdowns from mid-March to mid-May resulting in downward pressure on realized prices and spread. Average capacity utilization, however, remained above 90 percent.
Buildings North America shipments decreased due to slowing demand and COVID-19-related project delays during the second half.
BlueScope expects EBIT for full-year 2020 to be around $560 million with $260 million generated in the second half. Managing Director and CEO Mark Vasella noted a “high level of uncertainty in BlueScope’s key markets at the start of FY 2021 due to the pandemic and weaker steel spreads.”
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