Increased Asian Competition Pushes BlueScope’s Profits and Earning Lower

While the Australia arm of the business is finding it tough, its North American division—which is of a similar size—was not nearly as badly affected.

A worker leaves the financially beleaguered BlueScope Steel refinery in Port Kembla near Sydney on November 22, 2011. The company embarked on November 22 on a deeply discounted 600 million USD capital raising to tackle debt and try and turn around its fortunes. Australia's largest steelmaker will use the issue of 1.5 billion new shares to reduce almost 1.6 billion USD in net debt and strengthen its financial position, according to local reports. AFP PHOTO / Torsten BLACKWOOD Photo credit should read TORSTEN BLACKWOOD/AFP via Getty Images

Competition from Chinese and Indonesian steel producers and a falling Chinese housing market have combined to push BlueScope Steel’s net profit down to $805.7 million (US$538.2 million) for the year to June 30, from $1 billion a year earlier.

However, the company announced today that shareholders will receive a fully franked dividend of 30 cents a share for the second half of the financial year. The board has a target of 60 cents per share per annum.