Wednesday, November 9, 2011

BlueScope - Big Redundancies

BlueScope Share Drop?

Redundancy acceptance is coming in thick and fast - especially by the top end management!
But there is a problem - many are being put off to a later date, due to payment inconsistencies by the banks. Too much money out and not enough in - all waiting for the Government Steel Package for CO2 Tax but not until July 2012.

Sales are also reported down at BlueScope Distribution (price rise ZA only in December) as normally a quite period over Xmas anyway. The price increase hasn't resulted in expected sales growth and imports have increased by 15% in October & November of basic roofing, purlin, flashing feed coils by non BlueScope rollformers. The imports are starting to come - and the BlueScope price rise has not even been advertised by the major rollformers. The jumping off the ship has started.  Forward orders have increased through banking data released on LOC against steel coil suppliers in India, Korea and China by Australian companies.

1.   Keep a close eye on the Australian Icon in next 7 months.

2.   One other rollformer struggling badly yet one gaining market share through diversification.

3.   Which rollformer is now dealing with Corus/TATA for trials of new Dyesol coil solar sheets, as 20 coils came into Melbourne last week via Wales.

2 comments:

  1. we seemed to have overlooked the fact that last week the labor government led carbon tax was passed. This is the biggest risk to the roofing industry not imports! Also I have heard that all major manufacturers have announced a 8% increase on zinc and galv based products. Story goes that BlueScope and OneSteel both agreed to the rise to increase their profits not power increases or raw material costs or whatever story they are peddling this time! Again where is the ACCC?

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  2. Rights issue at 40 cents ? Brave move ! Push shareholders to take up their rights and average down is a good way to get survival cash

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