Steel Prices Still Underpinning BlueScope
2:17 PM
As BlueScope Steel revises guidance higher, once again, assessments of where peak earnings lie are becoming even more critical to the outlook
-Demand supporting the earnings outlook into FY22
-Are earnings nearing a peak?
-Potential for cash returns enhanced
By Eva Brocklehurst
BlueScope Steel ((BSL)) has developed a habit recently of revising guidance higher as its two principal earnings drivers, Australian Steel Products and North Star in the US, combine in a show of strength. The company now expects second half earnings (EBIT) to be $1-1.08bn, from prior guidance of $750-830m, driven primarily by improved steel pricing and volumes.
BlueScope Steel Limited(ASX: BSL) share price is racing higher on Tuesday morning.
In early trade, the steel producer’s shares are up 8% to a 52-week high of $23.99.
Why is the BlueScope share price racing higher?
Investors have been fighting to get hold of BlueScope’s shares this morning after it provided an update on its guidance for FY 2021.
As you might have guessed from the performance of the BlueScope share price, the update was a very positive one.
According to the release, BlueScope now expects its underlying earnings before interest and tax (EBIT) for the second half to be in the range of $1 billion to $1.08 billion.
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