BlueScope Steel Profit Plunges on Tariff Concerns and US Writedown

Highlights:

• Profit slump: Net profit down to $83.8 million from $806 million last year.
• Revenue pressure: Sales declined 4% to $16.3 billion.
• Investor impact: Shares dropped 3.69% at the time of writing.

Major Profit Decline

BlueScope Steel Limited (ASX: BSL) reported a steep drop in annual profit as global trade uncertainties and a significant writedown in its US operations weighed on performance. At the time of writing, the company’s share price was trading at $23.34, down 3.69% for the day.

For the year ended June, BlueScope posted a net profit of $83.8 million, a sharp fall from $806 million in the prior year. The decline was driven largely by a $439 million impairment on its North American coated products business, coupled with tariff pressures affecting trade flows.

Revenue and Market Pressures

Revenue slipped 4% to $16.3 billion, reflecting weaker demand in key markets. The company noted that uncertainty surrounding global trade tariffs, particularly in the steel sector, had added pressure to its earnings outlook. Rising costs and volatile commodity prices further compounded challenges across its international operations.

Strategic Outlook

Despite the weaker results, BlueScope said it remains committed to long-term growth, supported by investments in low-emissions steelmaking and supply chain efficiencies. Management acknowledged near-term volatility but highlighted the company’s strong balance sheet as a key buffer against external shocks. BlueScope has also reaffirmed its focus on sustainability initiatives, including transitioning toward greener technologies to remain competitive amid shifting global climate policies.

Market Reaction

The sharp decline in profit and cautious guidance triggered a negative reaction from investors, with shares falling more than 4% during the session. Analysts suggest the writedown in the US unit underscores structural challenges in that market, though the company’s Australian operations continue to provide stability.

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