BlueScope Steel Limited (ASX:BSL) released its full FY15 results today, reporting a colossal 160 per cent increase in statutory profits.
The company’s statutory net profit after tax (NPAT) came in at $136.3 million, up 160 per cent on the previous year. Underlying NPAT came in at 134.1 million, 9 per cent higher than last year with second half underlying NPAT coming in at $52.9 million.
For the full year, underlying EBIT came in at $301.8 million with second half EBIT of $130.8 million, up 15 per cent on the previous corresponding period.
During FY15 the company achieved strong cash flow in the second half, largely due to stronger cash earnings and timing of working capital. As a result net debt has been reduced to $275.2 million with gearing of 5.5 per cent.
BlueScope Chairman, graham Kraehe AO commented, “We are pleased with the company’s continued earnings growth. FY2015 was BlueScope’s best profit performance since the impact of the GFC on the steel sector in 2009. While a lot of work remains to achieve an acceptable return on invested capital, all credit to BlueScope employees across the globe for this year’s result.”
BlueScope CEO and MD, Mr Paul O’Malley commented, “We expect 1H FY2016 underlying EBIT to be similar to 2H FY2015. We expect 1H FY2016 underlying net finance costs and underlying tax charge similar to 2H FY2015, and profit attributable to non-controlling interests greater than 2H FY2015. Expectations are subject to spread, FX and market conditions.”
Following lower than expected half year results in February, BlueScope’s share price declined significantly. Tough economic conditions have put pressure on the company however strong results reported today demonstrates that the company’s disciplined and strategic approach has proved fruitful.
Author: Ben Visser
Aug 24, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.