BlueScope takes $439m hit on US business writedown
In its latest market announcement, BlueScope Steel reported profits came in at $84m, down $722m on FY 2024 results.
A large part of the profit slide was due to a $439m writedown of the US business previously called Coil Coating.
The huge cost comes just three years after BlueScope acquired the business in 2022.
'Disappointingly, there has been a delay in achieving our expectations of the BlueScope Coated Products business,' BlueScope chief executive Mark Vassella said in a statement to the ASX.
'It remains core to our North American growth strategy, and we continue to invest in the turnaround of the business.'
BlueScope described 2025 as a 'challenging year', saying softer conditions in the steel market overall and uncertainty about the US tariff policy also weighed on the result.
From June 4, 2025, Australian steel and aluminium imports to the US were subject to a 50 per cent tariff. This is an increase from a 25 per cent tariff imposed on March 12.
Australia overall faces a 10 per cent blanket tariff on trade going into the US, the equal lowest in the world.
The latest Newspoll published on Monday found that 42 per cent of the 1283 voters surveyed were more concerned by 'Donald Trump's tariffs' than 'China's military threat'.
BlueScope also stated the challenges regionally, including higher energy costs and lower production volumes, weighed on profits.
Earnings before interest and tax at BlueScope's Australian operations were down 31 per cent to $262m.
North American earnings dropped 45 per cent to $514m.
'While a softer performance than last year, this level of profitability in the face of the cyclically soft conditions and global uncertainty during the year represents a resilient result, underpinned by our diversified portfolio of quality assets and multi-domestic strategy,' Mr Vassella said.
Despite the falls, Mr Vassella predicts tariffs would be a net positive for the business due to the North Star mill in the US producing three million tonnes of steel, 10 times the amount the business makes in Australia.
BlueScope will pay a final dividend of 30 cents per share.
Looking forward, the business has guided underlying earnings before interest and tax will come in between $550ms and $620m over the next year.
This would still be down from the $738.2m achieved over the last year.
'While macroeconomic conditions remain mixed, our multi-domestic strategy of prioritising in-market production for in-market consumption sets us up strongly to manage the current environment,' Mr Vassella said.
'We are seeing signs of recovery in Australian construction and improving spreads in the US.'
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