Shareholders in BlueScope Steel Limited (ASX: BSL) are enjoying an early Christmas present after the company revealed it now expects half year earnings to come in at $460 million, compared to prior forecasts for $420 million. The uplift is being attributed to higher steel prices, larger volumes, and improved productivity among other factors.
The company stated it was "too early" to provide a forecast for the second half result due to rising raw material costs and imported competition offsetting the generally positive macro environment.
As a result the share price is up 5% to $15.25 today and the company also flagged that it expects its substantial U.S. profit base to benefit from tax breaks it estimates at 7% in FY 2018 to 11% in FY 2019 and thereafter thanks to company tax breaks being pushed through Congress in the US.
Earlier in the day the stock hit a record high of $15.73 on the positive outlook.
