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General Information
Company Name: BlueScope Steel Limited
Stock Code: BSL
GICS Sub-Industry: Steel
Market Cap ($M): 3,621
Equiv. Shares (M): 559

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 6.530 $ 6.500 $ 6.550 $ 6.450 $ 6.480 2,250,843 $ 0.050  0.772 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 13th Mar 2014
12 Month Target Price (average): $6.693
Brokers Surveyed: 6

Company Overview

Business Description:
BlueScope Steel Limited (BSL) is a flat steel producer and supplier of steel products and solutions focused on the global building and construction markets. It operates in four main geographical regions being Australia, New Zealand, Asia and North America.

Strategy Analysis:
BlueScope’s strategy is to grow shareholder value by growing its global building solutions segment, develop a leading position in painted and coated steel in the Asia-Pacific region, improve profitability in manufacturing and distribution operations in Australia and New Zealand and maintain profitability of its Hot Rolled Products North America assets while exploring potential growth options. BlueScope Steel reported a net loss of $12m for the half-year ended 31 December 2012, compared to a net loss of $530m for 1H FY2012, primarily reflecting the operational benefit of Australian restructure with lower loss-making export despatch tonnes, and lower restructure, redundancy and tax impairment charges in the current half. Revenues from ordinary activities were $3.7bn, down 17% from the same period last year, primarily due to lower sales volume arising from the 2011 restructure to reduce loss making export sales. Diluted EPS was (2.2) cents compared to (160.4) cents last year. The net operating cash inflow was $44m compared to an outflow of $151m in the pcp. No dividend was declared.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F 92.4 16.2 159.6 40.0 5.0 0.8 0.0
2014  F 35.6 6.2 73.8 103.8 0.0 0.0 0.0
2013  A 20.4 3.6 -- 96.5 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
Arrium (ARI) $1,811 M 1.6728 -0.6547 -0.1343 1.5536 4.4993 5.1973 0.0376 0.0902 0.0752
BlueScope Steel (BSL) $3,593 M -- -- 0.4928 -- 31.8474 21.3338 0.0000 0.0000 0.0210
Fortescue Metals (FMG) $16,597 M 0.2056 0.8625 -0.0856 10.0000 5.3692 5.8720 0.0202 0.0427 0.0543
Independence Group (IGO) $978 M -0.7429 1.4492 0.4892 40.9180 16.7065 11.2182 0.0048 0.0155 0.0302
Mount Gibson Iron (MGX) $905 M -0.4641 0.8206 -0.3432 9.7304 5.3445 8.1373 0.0482 0.0469 0.0469

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BSL 2.70 55.2 0.89 0.69 0.50
Market 1.07 15.9 1.26 1.99 1.71
Sector 0.88 12.2 0.67 0.72 4.97

Name Position Start Date
Mr Paul O'Malley Managing Director, Chief Executive Officer 06 August 2007
Mr Graham John Kraehe Non-Executive Chairman 10 May 2002
Mr Ronald John McNeilly Non-Executive Deputy Chairman 10 May 2002
Mr Kenneth Alfred Dean Non-Executive Director 21 April 2009
Mr Lloyd Jones Non-Executive Director 02 September 2013
Mr Daniel Grollo Non-Executive Director 27 September 2006
Mr John Bevan Non-Executive Director 12 March 2014
Ms Penny Bingham-Hall Non-Executive Director 29 March 2011
Mr Ewen Crouch Non-Executive Director 12 March 2013

Name Position
Mark Vassella Chief Executive, BlueScope Australia and New Zealand
Sanjay Dayal Chief Executive, Building Products
Bob Moore Chief Executive, Global Building Solutions
Charlie Elias Chief Financial Officer
Michael Barron Chief Legal Officer, Company Secretary
Keith Mitchelhill Executive General Manager
Pat Finan Executive General Manager, Global Building & Construction Markets
Ian Cummin Executive General Manager, People and Organisation Performance

Substantial Shareholders
Holding Name
42,582,637 (7.62%) Commonwealth Bank of Australia
27,976,544 (5.01%) Dimensional Entities

Calendar of Events
Date Event
23 February 2015 Report (Interim)
15 September 2014 Report (Annual)
18 August 2014 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


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