The New Zealand operations of Australian steel products maker Bluescope have given it a substantial boost to earnings.
It came about after a sharp increase in ironsand exports, better margins on steel thanks to lower coal costs and increased steel sales as the domestic construction market became more buoyant.
Underlying earnings before interest and tax clocked in at $A74.7 million ($NZ83.3 million) in the year to June 30, more than twice the previous year's $A36.1 million.
That figure was restated to reflect changes to Australian accounting standards, having previously been reported as $A40.5m.
The result was also assisted by favourable conversion of New Zealand dollar earnings to Australian currency, reflecting the relative strength of the kiwi dollar against its trans-Tasman counterpart.
The New Zealand result was a bright spot in an otherwise lacklustre earnings result, which saw Bluescope narrow its statutory net loss to $A82.4m from $A107.1m.
Total New Zealand segment sales for the year were A$870.9m, up 28 per cent on the 2013 financial year, driven by an 11 per cent increase in domestic steel tonnage shipped and a 36 per cent increase in ironsand exports.
However, ironsand revenues were lower thanks to reduced global prices and the strength of the New Zealand dollar.
Lower coal, scrap and coating metal prices helped earn a better "steel spread" margin during the year, despite lower global steel prices.
Source: nzcity.co.nz
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