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Australia's BlueScope Steel says sees strong H2

Reuters - Monday, May 12

SYDNEY, May 12 - Australian steel maker BlueScope Steel Ltd reiterated on Monday it sees a stronger result in the second half due to strong global steel demand and higher prices.

But it added that its coating businesses will see higher costs, especially in the fourth quarter, while the strong Australian dollar will also continue to have an impact on export earnings.

"Our current expectation for NPAT for FY08 -- fourth quarter is for NPAT of a similar order of magnitude to the FY08 first-half result of A$305 million," the company said in a statement. BlueScope, which makes flat steel products for building and construction, also said it expects a good start to the fiscal 2009 year, though raw material costs will rise.

In February, BlueScope said its underlying net profit for the six months to Dec. 31 fell to A$305 million from A$384 million, slightly above a forecast of A$294 million provided by Reuters Estimates.

Iron ore prices and freight costs have increased sharply, while the strong Australian currency has eaten into BlueScope's U.S. dollar-denominated earnings.

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