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Showing posts with label BlueScope Steel. Show all posts
Showing posts with label BlueScope Steel. Show all posts

Friday, March 11, 2011

BlueScope Steel Restructure

Fri,March11, 2011

The Chief Executive of Bluescope's Port Kembla steelworks says they'll know more about the impact of the companies restructure in the coming months.

Noel Cornish announced his retirement as the company revealed its plans to merge its Australian and New Zealand businesses.

Mr Cornish will step down in August and he'll be replaced by Mark Vasella who has been the President of Bluescope North America.

Mr Cornish says he'll remain involved as a member of Bluescopes board of Directors, and he admits there could be redundancies.

"Over the course of the next few months we will get more information about that and of course we will be very open and transparent about it ..let's wait and see what the detail shows and just reflect again that the way bluescope steel goes about these things that we try to have the utmost respect for people as we go through these processes." He said.

Noel Cornish says Labor's proposed carbon price will spell the end of steel manufacturing in Australia.

He says if its adopted in Australia and international competitors don't bear the same cost then Australian manufactured steel will become uncompetitive and imports will outweigh exports.

He says Labor's Carbon policy is fundamentally flawed because there will always be demand for steel.

"Australia will continue to use steel so whether its manufacutured here in australia or manufactured overseas we will still continue to use it so what we'll find is having hollowed out manufacturing in australia we will have no improvement in global greehouse gas emissions" He said.

The AWU's Port Kembla Branch Secretary, Andy Gillespie says Bluescope Steel has already cut jobs too far and production levels will be affected if more jobs go.

"I don't see there's any room for redundancies on the shop floor if the current production remains the same with the current production methods the merger of bluescope's 3 divisions i don't see affecting people on the shop floor it may however affect people higher up." He said.

Monday, February 21, 2011

Bluescope Steel chief Paul O'Malley slams carbon tax plan


February 22, 2011 12:00AM
By Geoff Easdown, From: Herald Sun

BLUESCOPE Steel chief Paul O'Malley has panned the Federal Government's plan for a carbon tax, branding it unfair, discriminatory and "not good" for the industry.

He argued the Government would restrain Australian manufacturers if imported products were allowed to land free of any carbon-related impost.

Mr O'Malley aired his views at a press conference after the steelmaker revealed a $55 million first-half loss due to higher costs and lower domestic demand for fabricated product. He conceded Bluescope had been through tough times.

The disappointing first half followed a $28 million loss in the previous corresponding period.

Bluescope Steel shares were hammered yesterday, falling more than 6 per cent when the market opened.

The accounts showed that during the six months to December 31, Bluescope took a $77 million writedown of goodwill on its distribution business and a $68 million write-back on its Coated China assets.

Mr O'Malley said there were signs of stronger industrial activity in the developed world this year.

"However, steel supply, excluding China, remains in an oversupply position," Mr O'Malley said.

"We need to see GDP in the developed world improve and drive increased steel demand, to narrow the supply-demand gap."

Referring to the proposed carbon tax, he said Australian manufacturers would face competitive restraints.

"From a policy perspective, there is a bust between the rhetoric and reality," he said, pointing out that European manufacturers avoided a carbon tax by shifting production.

Mr O'Malley revealed that the company was looking to mine its own raw materials because it was now consuming more than 8 million tonnes of iron ore and 4 million tonnes of coal annually.

An interim dividend of 2c a share, fully franked, will be paid on April 4 to shareholders registered by March 4. Bluescope shares closed almost 3 per cent, or 7c down, at $2.30.
(sourced:Herald Sun)

Australia's Bluescope Steel says H1 net loss A$55 mln


Feb 21, 2011

MELBOURNE Feb 21 (Reuters) - Australia's biggest steel maker, BlueScope Steel , posted a loss in first-half profit on Monday as its attempts to cut costs and lift Asian earnings was not enough to counter higher input costs, stagnant steel prices and softer demand.

Bluescope, which said conditions remained tough, posted a net profit of A$55 million in the six months to December, compared with a loss of A$28 million a year ago.

Bluescope said in November it expected to break even in the first half, or post a small loss on inventory adjustments, as it cut costs in the face of stagnant steel prices, high raw material costs, a strong Australian dollar and softer demand pinching profit margins.

Shares in Bluescope closed Friday at A$2.37, up from lows below A$2 in November but off highs above A$3 in April 2010. (Reporting by Miranda Maxwell; Editing by Balazs Koranyi, sourced:Thomson Reuters)