BlueScope Steel Limited (ASX:BSL) share price lower as FY net profit doubles to $1.57b

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BlueScope Steel

The BlueScope Steel Limited (ASX: BSL) share price is lower on Monday, down 19 cents or 1.06% to $17.68 at 1120am AEST.

The steel manufacturer announced a $250 million share buyback after reporting its full-year net profit more than doubled to $1.57 billion.

The result was boosted by one-off gains totalling $743.1 million, relating to tax set-offs and the reversal of last year’s Australian steel products plant and equipment impairments, and a 9% in revenue to $11.49 billion.

BlueScope CEO and managing director Mark Vassella said strong demand for steel and improved profit margins had driven a 15% improvement in full-year underlying earnings.

“Underlying (earnings before interest and tax) strengthened to $745 million in 2H FY2018, up $220.7 million on the first half, and our best half since December 2008,” he said.

Underlying profit after tax for the year to June 30 rose 27% to $826 million.

Outlook

BlueScope is forecasting a 10% jump in first-half 2018/19 underlying earnings before interest and tax, from the $745 million booked in the second-half of 2017/18.

The share price of BlueScope Steel is 30% higher than this time last year when it traded at $14.06.

with AAP 

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Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au