AUS
NZ
UK
CA
USA
IND
Highlights
- BlueScope lowers EBIT forecast for 1H FY2025 to a range of AU$270-AU$310 million, down from AU$350-AU$420 million.
- The China business is affected by the slowing domestic economy, while operational issues in Thailand have impacted Southeast Asia.
- The Coated Products Asia segment is expected to perform similarly to the second half of FY2024.
BlueScope Steel (ASX:BSL) has revised its earnings forecast for the first half of FY2025, with underlying earnings before interest and tax (EBIT) now expected to fall between AU$270 million and AU$310 million. This projection is a reduction from the company's previous guidance, which ranged between AU$350 million and AU$420 million, and reflects various challenges affecting BlueScope's operations across different regions.
The downward adjustment is attributed to a combination of factors, particularly in Asia. In China, the company has experienced the effects of a slowing domestic economy, which has impacted its business performance in the region. Additionally, short-term operational difficulties in Thailand temporarily hindered BlueScope's operations in South East Asia, although these issues have since been resolved. As a result, the Coated Products Asia (CPA) segment, which includes operations in China and Southeast Asia, is now expected to deliver results similar to the second half of FY2024.
Despite the challenges, BlueScope emphasized that its revised guidance remains subject to variables such as market conditions, foreign exchange fluctuations, and the spread between raw material costs and steel prices.
