BSL - Bluescope Steel

[It's Snake Pliskin]

Hi Reece,

Good move. It was up on impressive volume today especially at the close.

I will pyramid my position.

Happy hunting.
Snake

Hi Reece,

It broke $11.00 in trading.
Final position taken.

Cheers.............................................................

 

[reece55]

Hi Reece,

It broke $11.00 in trading.
Final position taken.

Cheers.............................................................

Hi Snake
I got stopped out back down at 10.5 ish from memory, bit of a pity really because it has certainly moved nicely. Too tight on the stop here, still seems valid that a wave 5 could be on it's way here....

All the best in the position mate..

Cheers
Reece

 

[bigdog]

The market did not like todays news!!

SP is currently down
BSL $11.09 -$0.26 -2.29% high $11.36, low $11.08 1,295,389 shares $14,559,388 @ 31-Jul 12:59:14

Todays press

http://www.news.com.au/adelaidenow/story/0,22606,22164226-5006368,00.html
Smorgon shareholders back break-up
July 31, 2007 10:43am

SHAREHOLDERS have backed the break-up of Smorgon Steel Group by OneSteel and BlueScope Steel at a meeting in Melbourne.
Chairman Graham Smorgon told the meeting 99.75 per cent of proxies supported the break-up.

Votes from shareholders present at the meeting are expected to push support for the break-up to more than 99.8 per cent, with the final result to be announced to the ASX shortly.

"It is a sad day when I think back to the start of this company and where it's come from and where it's going to," Mr Smorgon told reporters after the meeting.

"But under these circumstances, it's the right thing for shareholders and so it's got to be done."

Under the break-up arrangement, BlueScope will acquire Smorgon's distribution business for about $700 million and OneSteel will pick up the rest of Smorgon's assets for $1.1 billion.

An independent expert's report carried out by Grant Samuel & Associates has deemed the merger as being in the interests of Smorgon's shareholders.

Mr Smorgon said consolidation in the steel industry was inevitable.

"Australia's a very small market and it's just not big enough to sustain the growth that's necessary in steel," he said.

"Steel is back in favour and I think there will be further consolidation worldwide."

 

[bigdog]

http://www.smh.com.au/news/Business...y-housing-slump/2007/08/03/1185648107814.html

BlueScope 'unaffected' by housing slump
August 3, 2007 - 11:50AM

BlueScope Steel Ltd outgoing chief executive Kirby Adams says the business is not being affected by the US housing slump.

"We've not seen any crossover contagion from the US housing slump into our business," Mr Adams said.

"From our point of view the North American housing market remains good."

Mr Adams' comments were made at a press conference ahead of the expected confirmation of BlueScope's buy of the distribution business of Smorgon Steel Group Ltd.

BlueScope's Butler Manufacturing in the US produces steel building systems.

Mr Adams also reiterated that the company has had informal approaches over the years, but indicated that there had been no firm takeover proposals, explaining: "There's been a lot of flirting and no diamond ring".

At 1131 AEST on Friday BlueScope's shares were down one cent at $10.58.

 

[bigdog]

BlueScope Steel rejects talk that takeover offers have rolled in
Tan Hwee Ann
August 4, 2007
http://www.theage.com.au/news/busin...n/2007/08/03/1185648147722.html?page=fullpage

BLUESCOPE Steel says it has not received any takeover offers, following speculation it may be the next company to receive a bid in the industry.

"There's been a lot of flirting but no diamond ring," said Kirby Adams, chief executive of the Melbourne-based company. "There's no secret that there's been a number of approaches over the past few years." Late last month, The Australian Financial Review said Arcelor Mittal, the world's largest steel maker, might be considering a bid for BlueScope.

Higher steel prices have prompted takeover offers worth $US34 billion ($A39.6 billion) in the industry this year, according to Bloomberg data.

BlueScope yesterday won court approval to buy the distribution unit of rival Smorgon Steel Group for $520 million.

This meant BlueScope was buying the unit at six to seven times its annual earnings, Mr Adams said.

Mr Adams also said the company's US Butler business unit, which provides products for commercial and industrial projects, had not been affected by the slowdown in the US housing market.

Butler and architectural products accounted for 6 per cent of pre-tax earnings for the half ended December 31.

"We haven't seen any crossover contagion," Mr Adams said. "From our view, the North American market remains good and we're very pleased with our performance there."

The US is mired in the worst housing recession in 16 years. Purchases of new houses fell 6.6 per cent in June, the biggest drop since January, the US Government said last month.

BlueScope produces hot-rolled steel coil, a benchmark product, which is processed to make pipes and tubes and is used in cars and buildings.

It also paints, coats and processes steel, which it turns into roofs, fences and walls.

BLOOMBERG

 

[bigdog]

http://www.news.com.au/adelaidenow/story/0,22606,22274555-5006368,00.html


BlueScope Steel doubles profit
By Isabelle Oderberg

August 20, 2007 11:04am

BLUESCOPE Steel has doubled annual earnings and says it has started the new year well due to ongoing strong demand in the global steel market. Australia's biggest steelmaker made a fiscal 2007 net profit of $686 million, up 103 per cent from $338 million in the prevous year.

Revenue jumped 11 per cent from $8.031 billion to $8.913 billion, on the back of higher prices, a better product mix in exports and higher sales at home and in Asia and the US.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 67 per cent to $1.423 billion.

Outgoing chief executive Kirby Adams said the outlook for fiscal 2008 was positive.

"This year, the global steel market was very strong with the forecast for global steel demand remaining positive," he said.

"China, the USA and Europe are driving this healthy outlook.

"Asia now produces more than half of all the crude steel produced in the world, and China is the largest single market for steel and has the strongest demand growth of any country."

Mr Adams said while the Chinese Government had been working to eliminate inefficient mills and reduce exports, it had not significantly slowed production.

In Australia, BlueScope had started fiscal 2008 well with a stronger Australian dollar, a stable global steel price environment and high metal coating costs.

"Asian markets and opportunities are slightly improved, and the operational ramp-up of new sites is growing revenue while coated product margins continue to be under pressure, particularly in China," he said.

"We will continue to aggressively manage those factors over which we have control, including focusing on safety and environment, containing costs, improving our processes, achieving volume and production efficiencies, and optimising mix and margins.

"Clearly, our global footprint and the diversity of our product lines will be of benefit going forward."

Earlier this mont, BlueScope announced that Mr Adams will be succeeded by chief financial officer Paul O'Malley in November.

Mr Adams said his last annual result as chief executive was pleasing with "excellent" operational performances across all businesses, including production records.

"All business reporting segments were profitable, with Port Kembla Steelworks continuing to be the profit and cash flow engine of the company," he said.

"Pleasingly, our Asian portfolio exhibited substantial volume growth as new operations in China, Vietnam, Thailand and India were commissioned and ramped up.

"Margin compression in our mid-stream metallic coating and painting businesses prevailed through most of the year, as these businesses confronted huge increases in zinc costs and growing exports from expanding north Asian production."

BlueScope also revealed that a 19.9 per cent stake in Smorgon Steel Group, which it bought in August 2006, to block the smaller group's takeover by rival OneSteel, had cost it $319 million.

A gain of around $128 million will be recognised in its 2008 earnings on the sale of the shares back to OneSteel.

The share purchase helped BlueScope forge its involvement in the sector's consolidation, winning Smorgon's distribution business for around $700 million and leaving the rest of the company to OneSteel.

Mr Adams said global consolidation in the steel industry will continue, following Mittal's acquisition of Arcelor, Tata's purchase of Corus and more recently, Ternium's acquisition of Grupo IMSA.

"One of the principal benefits of this consolidation is better matching of production to demand as well as global economies of scale and marketing," Mr Adams said.

"I expect this consolidation process to continue its momentum over the next couple of years."

BlueScope also said it balance sheet gearing had dropped to 28 per cent, from 38 per cent, giving it a "very strong financial platform" for continuing growth.

Bluescope, which was spun out of BHP Billiton Ltd five years ago, declared a final dividend of 26 cents for the year ended June 30.

The total dividend for the year was 47 cents, up seven per cent on fiscal 2006.

 

[bigdog]

BSL SP has increased 9.35% in past the 13 days to $11.34
Date------ Close Inc%.. Volume....
12-Oct-07 11.34 0.35% 2,353,991
11-Oct-07 11.30 1.25% 2,790,955
10-Oct-07 11.16 2.10% 3,521,942
09-Oct-07 10.93 -0.64% 4,591,108
08-Oct-07 11.00 0.18% 2,740,299
05-Oct-07 10.98 0.46% 1,223,553
04-Oct-07 10.93 -3.02% 2,787,984
03-Oct-07 11.27 4.26% 5,141,747
01-Oct-07 10.81 0.56% 1,460,368
28-Sep-07 10.75 1.03% 8,684,943
27-Sep-07 10.64 1.33% 4,844,296
26-Sep-07 10.50 1.25% 4,832,450
25-Sep-07 10.37 ----- 4,848,296

Bluescope an attractive takeover target - analyst
http://www.news.com.au/adelaidenow/story/0,22606,22574357-5006368,00.html
Article from: AAP
October 12, 2007 03:43pm

STEEL producer Bluescope Steel could easily be swallowed by a larger rival in a deal potentially worth up to $8.5 billion.

Research from brokerage JP Morgan lists Bluescope as an attractive target within the steel industry, which has seen a spate of takeovers in the past few years.

"BlueScope is of a size that could be relatively easily purchased and integrated into a number of larger steel producers,'' JP Morgan said in a client note.

"We do not rule out the possibility of a takeover bid for Bluescope, we are cautious, however, on the magnitude of the premium that could likely be paid.''

JP Morgan said Bluescope's established downstream operations across Southern Asia and upstream operations in Australia, the United States and New Zealand made the company an attractive target.

Using financial figures from calendar 2005, JP Morgan assumes an implied takeover price of $11.67 for every Bluescope share, valuing a potential deal at $8.5 billion.

The brokerage examined a number of recent major recent steel transaction and used the 2005 figures to ensure all of the companies in the sample were experiencing similar steel price conditions.

The global steel industry has undergone a flurry of consolidation over the past five years, underscored by Mittal's acquisition of large European rival Arcelor, positioning the company as the dominant producer globally.

There has also been a string of acquisitions among the mid-sized steel producers as companies seek to consolidate their regional positions and expand into new markets.

"BlueScope is truly a niche producer on a global scale and the larger steel producers would seemingly have little difficulty in acquiring it,'' JP Morgan said.

"Given the almost monotonous procession of large acquisitions seen within the global steel sector over the last five years, a consistent theme that has emerged around BlueScope Steel is the possibility of it being bid for in the near future and the size of a potential takeover premium.''

--------------------------------------------------------------------------
However, JP Morgan rates the stock as underweight on 11/10/2007 and has set an underweight rating, but warns of consensus downgrades as a result of a rising $A.

 

[sfx]

BSL on a downturn today - media manipulation here ?! Australian Financial Review had a negative article today about BSL losing $100 per tonne on sales to China....

 

[YELNATS]

Using financial figures from calendar 2005, JP Morgan assumes an implied takeover price of $11.67 for every Bluescope share, valuing a potential deal at $8.5 billion.

I wonder if BSL directors would recommend acceptance to shareholders of a takeover bid of only A$11.67 per share. BSL has been as high as $12.65 in the last 12 months. The JP Morgan 2005 figures are now 2 years old and therefore an offer of $11.67 looks a little low and may not recognise the company's potential to add further value in future years.

 

[long$$]

Does anyone understand Bluescope's China strategy. If they are losing $100/tonne (as reported in the Fin Rev, & explaining their ~4% drop in price) leading up to the Olympics, what chance do they have of improving on this?

 

[sfx]

I don't have the full article but in the AFR printed 19th Oct, the article went something along the lines of the following:

"Bluescope's experiment in Asia proves costly

BlueScope Steel's investments in Asian steel product manufacturing plants have largely failed to meet expectations. The company has invested approximately $A1 billion in the plants since its sharemarket float. However, BlueScope is currently losing an estimated $A100 on each tonne of steel that it processes and sells in China. There is speculation the situation could worsen further as rising raw material prices place increasing pressure on margins."

 

[bigdog]

The market liked yesterday's ANN with SP BSL ▲ 4.44% .. $0.420 .. $9.879

Todays MARKET MOVERS SNAPSHOT (The Age site updated hourly)
http://markets.theage.com.au/apps/mkt/movers.ac

Top 20 of ASX 100 Stocks
Rises: 77 Falls: 19 Steadies: 6 Nov 29, 2007 7:00:06 PM
__ .. ___ ___ _____ .. ______ .. _____ .. ________
Sq - ASX mv .Chg% .. ...Chg$ .. Price$ .. Company
________________________________________________________________________________
01 - MIG ▲ 6.78% .. $0.200 .. $3.150 .. Macquarie Infrastructure Group ▲
________________________________________________________________________________
02 - WOR ▲ 5.34% .. $2.400 .. $47.344 .. Worleyparsons LTD ▲
________________________________________________________________________________
03 - FMG ▲ 5.32% .. $2.750 .. $54.442 .. Fortescue Metals Group LTD ▲
________________________________________________________________________________
04 - BSL ▲ 4.44% .. $0.420 .. $9.879 .. Bluescope Steel LTD ▲


http://www.theaustralian.news.com.au/story/0,25197,22845529-643,00.html

BlueScope to streamline balance sheet
Andrew Trounson | November 30, 2007

BLUESCOPE Steel's new chief executive Paul O'Malley is looking to find $200 million in balance sheet efficiencies, including property sales, to offset lost earnings from an extended maintenance shutdown of its key Port Kembla steelworks in 2009.

The 100-day shutdown of one of Port Kembla's two blast furnaces for a reline is expected to cost $100-$200 million in lost earnings before interest and tax and Mr O'Malley wants to move to compensate that by selling or leasing non-core properties, reducing inventories and cutting working capital.

"We believe there is enough cash that we can realise from the balance sheet to offset that," Mr O'Malley said.

The plan is part of Mr O'Malley's "blueprint" for BlueScope following the retirement last month of Kirby Adams.

Mr O'Malley's strategy includes promoting and developing new steel building products and "reinvigorating" the Australian business through the integration of the Smorgon steel distribution business, as well as what he calls a "stronger customer emphasis".

Mr O'Malley said he was committed to growing the Asian and North American businesses, with a focus on expanding operations and pursuing bolt-on acquisitions, rather than pursue greenfield developments.

Under Mr Adams, BlueScope built new manufacturing operations in Asia to position the company to benefit from rising steel demand in the region and Mr O'Malley now appears focused on consolidating that position. He is looking for the downstream business in Asia to grow, to pull through more products and to eventually support manufacturing expansions.

"We are certainly not moving away from our focus in either North America or Asia," he said.

But Mr O'Malley said its steel coating plants in China and Vietnam were underperforming. In China the operation was suffering from cutthroat local competition, while Vietnam was not performing as well as expected.

Mr O'Malley has appointed Charlie Elias as his successor as chief financial officer. Mr Elias is currently CFO at Linfox Logistics and will join in February. Like Mr O'Malley, Mr Elias is a former senior executive at TXU Australia.

"Charlie has domestic and international experience and has led a variety of large merger and acquisition transactions," Mr O'Malley said. "His key focus will be to drive effective capital management and to identify and pursue sustainable growth opportunities throughout our global footprint."

BlueScope said the long-term demand outlook for steel was strong, with the Middle East and Russia using more of its building products.

"Demand, we think, will be sustained for a long period of time," Mr O'Malley said.

 

[dan-o]

It seems no-one has been talking about this one for a while. What do people think? It seems a good way to leverage the china story, good dividend, etc...

 

[deadset]

I think its the best of the steel producers, and they have alot of demand from the US for their products too.

If anyone can find a graph of steel prices, I'd be very appreciative, its very hard to find on the internet it seems.

I've been going from here, but a free graph would be much better than just a daily price : http://www.steelbb.com/steelprices/

It boggles the mind that the steel price isn't reported much IMO, considering the effect on some of our companies.

I've been accumulating this stock, so I'm wary of steel price changes.

I have noticed that the commodity indexes can change without affecting steel prices, there seems to be a slight decoupling from other metal prices.

(for future reference)
Rebar world price is $1046/t today.
BSL $9.21

 

[cruise61]

What a great oppatunity to get into BSL cheap.

Cant believe i got in at 5.7

With a little luck they may swing a little lower and i can grab some more but hard too see that happening now after looking at US markets slight loss last night and G7 measures being put in place

Monday will tell :0)

Either way im in for the long haul

 

[michael_selway]

What a great oppatunity to get into BSL cheap.

Cant believe i got in at 5.7

With a little luck they may swing a little lower and i can grab some more but hard too see that happening now after looking at US markets slight loss last night and G7 measures being put in place

Monday will tell :0)

Either way im in for the long haul

Hm yeah not bad

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 79.7 98.6 96.9 100.5
DPS 49.0 50.0 49.5 51.0

thx

MS

 

[cruise61]

These shares should be sitting much higher ,they are a very strong company with awsome npt and expected increas this year.

Might be one to keep a very close eye on exp now :0)

Just a thought


Roll on tuesday let the ride continue

 

[cruise61]

These shares should be sitting much higher ,they are a very strong company with awsome npt and expected increas this year.

Might be one to keep a very close eye on exp now :0)

Just a thought


Roll on tuesday let the ride continue

Full financials out today ,not a bad effort at all.
Shares down again today but they will bounce back

 

[Sean K]

Roll on tuesday let the ride continue

Yep, off 2.4% while the rest of the market did ok.

Full financials out today ,not a bad effort at all.
Shares down again today but they will bounce back

They may be off because of the likely downturn in demand from China next year.

Sounds like they'll be OK in the first half though.


BlueScope warns of steel demand drop
October 15, 2008

AUSTRALIA'S largest steelmaker, BlueScope Steel, has forecast a strong first half, but warns that the market turmoil may affect demand.

Chief executive Paul O'Malley said the company expected a good 2008-09 first half, but the high cost of raw materials would affect its Australian business.

"The ongoing crisis in the financial markets may affect funding of commercial and industrial projects, dampening demand, although the weaker US dollar has provided some boost to manufacturing exports from the US," Mr O'Malley said in the company's annual report.

European and Asian steelmakers are reducing output on weaker demand. Four major Chinese mills -- accounting for 15 per cent of the country's capacity -- will cut October crude steel output by 20 per cent.

Mr O'Malley said demand for BlueScope's products remained solid, but the residential segment continued to be "soft". BlueScope closed down 14c at $5.66.


Gav was asking how just 4 steel mills lowering output was going to be significant in China when there are hundreds of them. I guess they must be pretty big one's and perhaps a sign others will follow.

 

[dan-o]

This continues to fall...
Do people think they can maintain their dividend yield next year? getting close to 10%FF at this price...