Australia's largest steelmaker BlueScope doubled its annual net profit to 686 million dollars (548.8 million US) on the back of record revenue, the company said Monday. BlueScope Steel Ltd said its revenue in the year to June had grown 11 percent to 8.9 billion dollars.
Business in Asia grew substantially as new operations in China, Vietnam, Thailand and India were commissioned and ramped up, the company said. Managing director and chief executive Kirby Adams told reporters BlueScope had enough cash for merger and acquisition opportunities.
"We are certainly looking," he said. BlueScope recently acquired Smorgon Steel Ltd's distribution business as part of a deal which saw the rest of Smorgon taken over by Australia's second-largest steel producer, OneSteel. There has been speculation recently that the company itself might become a take-over target.
Adams, who will step down as chief executive in November, said BlueScope had received a number of informal approaches from international companies. ArcelorMittal, the world's largest steelmaker, has been named as a possible suitor because of its desire to increase its presence in Asia.
BlueScope said higher sales volumes and prices and a profit on the sale of its Vistawall business for 190 million US dollars partly offset the higher cost of raw materials and the effects of changes in foreign exchange rates.
The company declared a final dividend of 26 cents, compared to 24 cents a year ago. Looking ahead, Adams said global demand for steel remained strong. In mid-afternoon trading on the Australian stock exchange, BlueScope shares were up 48 cents or 4.7 percent at 10.71 dollars.