The BSL result handed down 20/8/07 just reconfirms the underlying strength in the building and construction industry at a commercial and civil level curtousay of the infrastructure spend by state and fed govts alike
BlueScope Steel doubles net profit Monday Aug 20 16:30 AEST BlueScope Steel Ltd has doubled annual earnings and says it has started its new financial year well, as demand stays strong in the global steel market.
Australia's biggest steelmaker says domestic demand is buoyant thanks to strong spending by state governments and, while it is experiencing some margin issues in China, it is brandishing a bullish outlook for the Asian growth powerhouse.
"Fundamentally we're still very bullish on China, everything we see on the ground says China is continuing to grow
" ... the consumption of steel and the consumption of steel most particularly in building applications is growing, which bodes well for BlueScope in China," Mr Adams said.
In Australia, demand is also increasing, with a healthy economy driving development.
"If you go to build a new project, you can't get a crane - that is the best evidence I can give you about the underlying demand that is coming through the system on industrial, commercial and infrastructure projects in Australia," Mr Adams said.
"If you look at the laundry list of projects that ... governments have coming down the pipe, whether it's in road, rail, transport, ports, hospitals, schools, it is a lot of spending that it going to drive steel into non-dwelling applications."
So far US market jitters are not affecting the Australian company's North American operations.
"Our Butler Buildings business is not participating and never has participated in the residential side of the equation," Mr Adams said.
"We have yet to see or feel any contagion, from what's going on in sub-prime house mortgage side of the economy into the building and construction side of the economy in industrial and commercial."outgoing chief executive Kirby Adams said.
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