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BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance this morning.
The company expects its underlying earnings before interest and taxt (EBIT) for the six months ended 31 December 2016 to be around $600 million, compared with prior guidance of $510 million.
The company puts this 160 per cent growth on earnings compared to the first half of FY16 down to three main points:
- stronger steel prices and spreads across its businesses particularly benefitting its Australian Steel Products and New Zealand and Pacific Steel operations;
- the impact of stronger than expected iron ore prices on export iron sands profitability; and
- productivity improvements, including further cost reductions, in the Australian Steel Products, North Star BlueScope Steel and New Zealand and Pacific Steel segments.
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