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

 

[rcw1]

Good evening
Chart update ...
Daily

Not holding

Kind regards
rcw1

 

[finicky]

Bluescope is up 2%
Would such a tariff apply to products from Bluescooe's U.S located operations?. I am guessing not?

Not Held

https://www.dailytelegraph.com.au/news/world/united-states/i-shouldnt-say-kremlin-speaks-on-alleged-trumpputin-call/news-story/491476dd047e21b60cba37c67848fd27?utm_source=DailyTelegraph&utm_medium=email&utm_campaign=Editorial&utm_content=DT_LATESTNEWS_PM-CUR_02&net_sub_id=348714043&type=curated&position=2

Trump hits Aussie steel, aluminium with 25 per cent tariff​

"Steep tariffs can effectively cripple exports and if the duties are imposed, Australian industry will be heavily impacted.

The US imported about $638m worth of Australian steel in 2024, the UN’s COMTRADE database shows.

Major ASX-listed companies like Rio Tinto and BlueScope Steel will be exposed to the tariffs and the benchmark ASX200 lost more than 0.5 per cent at the opening bell.

In a statement release don Monday, BlueScope, said: “We are aware of media reports this morning that President Trump has said he will announce tariffs on steel and aluminium imported to the US,” a BlueScope spokesman said.

“BlueScope has been investing in the United States for 30 years. Most recently, we have spent $2 billion on acquisitions and brownfields expansion of our operations there. BlueScope is now the fifth largest steel producer in the US, employing 4,000 American workers."

 

[finicky]

Sorry the above link is a Google push and I see it changes its subject matter.
Anyway BSL looks set. TODAY:
"From the outset, Australia’s biggest steelmaker BlueScope is well insulated from the tariffs given it operates the massive North Star steel mill in Ohio, fitting the bill of Trump’s demands of “Make it in America”."

Loading...

www.theaustralian.com.au

 

[finicky]

Market Matters afternoon report:
Bluescope (BSL) +12.98% Delivered a strong 1st half result driven by increased Colorbond volumes in Australia, implying residential demand may be recovering more quickly than expected.

Not Held

 

[finicky]

Further from Market Matters:

BlueScope Steel (BSL) $25.25
BSL +12.98%: Delivered a strong 1st half result driven by increased Colorbond volumes in Australia, implying residential demand may be recovering more quickly than expected.

1H revenue $7.91 billion, -7.3% y/y
1H25 EBIT of $309m, at the upper end of $270-310m guidance, consensus was $299m
Interim dividend per share A$0.30 vs. A$0.25 y/y

Bluescope put out a profit-warning in October, guiding to 25% lower earnings as Chinese exporters flooded the market with cheaper product. However, the 9% increase in Colorbond indicates there is an ongoing and increasing appetite for high quality steel in the market.

The business has guided to full-year earnings of $360m-$430m, reflecting expected improvements in US steel spreads, stronger domestic volumes in Australia, and ongoing cost and productivity initiatives. The improved outlook is incremental to news around U.S steel tariffs and optimism for an Australian exemption which will provide another tailwind for BSL.
MM is cautiously bullish BSL

 

[divs4ever]

Market Matters afternoon report:
Bluescope (BSL) +12.98% Delivered a strong 1st half result driven by increased Colorbond volumes in Australia, implying residential demand may be recovering more quickly than expected.

Not Held

locally a LOT of sheds/garages/workshops being built here as weekenders or a prelude to a proper house later

it might not be the recovery the government hopes for but looks good for BSL and rivals