Bluescope Reports Results for FY2020

BlueScope has reported FY2020 net profit after tax of AUD 96.5 million, including a AUD 197.0 million non cash write-down of the New Zealand and Pacific Islands segment, underlying NPAT was AUD 353.0 million. BlueScope Managing Director and CEO, Mark Vassella said “In the second half, we delivered underlying EBIT of AUD 261.6 million. The entire BlueScope team has rallied together to deliver this solid outcome. The Company maintained high levels of business activity throughout the June half. The Australian Steel Products segment saw domestic despatch volume increase 3 per cent in FY2020, and 2H FY2020 domestic despatches were resilient even with the emergence of the pandemic. In the US, despite closures of major automaker customers from mid-March to mid-May, North Star maintained capacity utilisation of over 90 per cent during 2H FY2020.”
Australian Steel Products – Delivered underlying EBIT of AUD 305.1 million down by 43 per cent on FY2019. Steel spreads were compressed, driven by weaker regional steel prices and higher raw material costs, and coke margins weakened. Domestic sales increased to 2.17 million tonne, up 3 per cent over FY2019 from stronger underlying demand. Domestic volumes in 2H FY2020 remained resilient.
North Star – Delivered underlying EBIT of AUD 189.6 million, down 71 per cent on FY2019. Realised steel spreads were weaker after the strong levels seen in FY2019. Despite two-month automaker shutdowns, capacity utilisation of over 90 per cent was maintained during 2H FY2020, demonstrating the quality of the North Star business.
Building Products Asia and North America – Segment underlying EBIT was AUD 155.3 million, up 16 per cent on FY2019. Performance in ASEAN improved driven by better margins and continued benefits from the cost reduction and manufacturing improvement program, and notwithstanding the government-mandated closure of Malaysian operations from mid-March to early May. The North America operations delivered a better result than FY2019, with a particularly strong performance in 2H FY2020 driven by improved manufacturing performance and contribution margins. Despite mandated government closures during 2H FY2020 due to COVID-19, India and China both delivered stronger results.
Buildings North America – Delivered underlying EBIT of AUD 37.9 million, down 29 per cent on FY2019. After a good first half, the second half saw lower volumes from the unfavourable effects of seasonality, combined with COVID-19 impacts including project delays and softer end market demand.
New Zealand and Pacific Islands – Delivered an underlying loss before interest and tax of AUD 5.8 million, down AUD 86.4 million on FY2019, driven by lower steel prices, lower vanadium contribution, high costs and the impact of the government enforced shutdown during April 2020.