Bluescope Steel warned on Monday earnings are set to fall in the current half, hit by import competition and soaring power and gas prices locally and weaker margins in the United States.
At the same time, the country’s biggest steel maker flagged its well-respected chief executive, Paul O’Malley, would retire in December. He will be replaced by the head of the company’s Australian arm.
Paul O’Malley is stepping down as ceo of BlueScope steel after 10 years at the helm.
Photo: Louie Douvis
Bluescope said underlying earnings were set to drop 20 per cent in the current half from the second half of the 2017 financial year to around $422 million, implying a 30 per cent drop from a year earlier.
“Productivity improvements … are not yet fully offsetting the scale of energy cost escalation in FY2018,” the company said, as it released results for 2017.
Underlying profit rose 112 per cent to $650.8 million, based mainly on cost-cutting. However, the result was below market forecasts of $682 million.
And its final dividend of 5 cents a share was also below market forecasts for 7 cents.
However, Bluescope said it would return a further $150 million to shareholders through an on-market share buyback.
Reuters
Article source: http://watoday.com.au/small-business/managing/work-in-progress/intercultural-relationships-a-factor-in-entrepreneurial-success-research-shows-20170720-gxfmwo.html
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