Business Description:
BlueScope Steel Limited (BSL) is a steel company based principally in Australia, New Zealand, North America, and Asia. BSL manufactures and distributes flat steel products, steel building products as well as metallic coated and painted steel products. It also designs and manufactures pre-engineered steel building and building solutions. BSL’s products are marketed under four core brands: XLERPLATE Steel, COLORBOND Steel, Clean COLORBOND Steel, ZINCALUME Steel, and LYSAGHT.

Strategy Analysis:
BSL has 70-80% market share in flat steel products in Australia and New Zealand. BSL's main flat product production facility is the low cost Port Kembla steelworks which has annual production capacity of over 5Mt, reduced to 2.6Mt in FY12 with the closure of a blast furnace. Strategy is to grow shareholder value by reinvigorating the Australian and New Zealand domestic businesses, improving the Asian and North American businesses and leveraging the company´s pre-engineered building capabilities, in particular in Asia. BlueScope Steel reported a net loss of $1.05bn for the year ended 30 June 2011 compared to a profit of $126.0m last year. The loss was mainly due to net impairment writedowns and spread contraction. Revenues from ordinary activities were $9.11bn, up 6% from last year. This was primarily due to higher international and domestic selling prices and higher despatch volumes partly offset by a higher average A$:US$ exchange rate for FY2011. Diluted EPS was (57.4) cents compared to 6.9 cents last year. Net operating cash flow was $21.3m compared to $376.9m last year. The final dividend declared was nil, taking the full year dividend to 2 cents compared with 5 cents last year. The Company has announced a major restructure of Australian operations to reposition it for improved profit and growth.