BSL - Bluescope Steel

[finicky]

Market Matters Match out

• BlueScope (BSL) -3.07% blamed softness in their US business for a 22% decline in FY24 profit while Ebit guidance for FY25 was below expectations.

 

[divs4ever]

i need lower to be tempted to return to this

but not a huge drop

another 3% to 5% lower tomorrow would have me considering

BTW i don't expect too much from the US,last time i was in ( BSL ) the US hit them with tariffs for a product produced in Tasmania

you have to suck to be beaten by steel made in Tasmania ( considering the transport costs to get it in the US)

but in the rural ( and small town/villages near me) , i notice plenty of new sheds and 'garages ' going up

maybe they can maintain a little growth as recession looms large

 

[rcw1]

Good evening,
Just having a peak at BlueScope ...
$0.30 fully franked dividend payment date 15/10/24

BLS reported (19/08/24), that the company is increasing focus on managing cost and revenue performance, and on the timing of capital expenditure. This is particularly relevant for the Australian business to ensure ongoing resilience in an environment of sustained low spreads and cost escalation. In this context, the Company expects underlying EBIT in 1H FY2025 to be in the range of $350 million to $420 million. Unwieldy variance here!!!

Weekly Chart

Not holding

Kind regards
rcw1

 

[rcw1]

Good morning

What are analysts saying about stocks today (24/10/24):

Bluescope Cut to Neutral; $23 target: Citi
EDIT: further:

Citi equity analyst Paul McTaggart says the valuation metrics for BSL “are still supportive… as steel spreads normalise and North Star and Aus domestic volumes lift”. However, US steel prices look to have peaked near term with Asian imports rising and competitive even with tariffs. “China steel consumption is contracting at a faster rate than production and net steel exports are now running +100 mtpa (million tonnes per annum) keeping pressure on Asian steel prices.
At home, steel consumption has moderated this year and Mr McTaggart expects residential detached construction, which makes up one-third of BSL’s domestic steel demand, will remain at capacity for, perhaps, multiple years. “Moreover, rising interest rates and declining house prices present a possible cyclical headwind.”
However BSL’s significantly restructured operations in the past four years have made it more resilient to market downturns and its strong balance sheet can support higher dividends/capital management.
Kind regards
rcw1