Bluescope Posts Losses But Still Plans To Buy More Business
Bluescope Steel has been trying to recoup its losses since 2010, but the company reports that its year to June net loss is another bad reflection of its current statues.
Shares for the company went done to 12%, and Bluescope’s loss is at $84.1 million, while revenue is at $7.3 billion, falling from $8.4 last year.
The company attributes many reasons for its plunge, including lowering of materials, while analysts say it was partly due to the failure of its restructuring to take off. It also cites the demand domestically haven’t had a good outlook, but Bluescope is still optimistic it will be able to deliver a profitable first half. The company, however, is realistic by saying, “We do not expect a first half 2014 outcome better than the second half 2013 outcome.”
Its chairman said, “BlueScope’s financial position has been strengthened and the company is well placed to benefit from any recovery in the Australian economy and has the ability to grow in key overseas markets.”
The company, meanwhile, is still planning to pursue the purchase of Orrcon, a manufacturer of tubes and pipes, as well as Fielders, a building products company. These are businesses owned by Hills Holdings and Bluescope is expected to gain this for $87.5 Million.
Says its Chief, “These businesses are close to BlueScope’s core Australian operations. Our objective is to improve the efficiency with which we can serve Australian customers by further lowering costs through the integration of these businesses with our existing operations.”