SYDNEY (AFP) – Australia’s largest steelmaker BlueScope on Monday reported annual net profit fell 13 percent to 596 million dollars (518 million US) from 686 million in the previous year.

However, with write-downs of 253 million excluded, underlying operating earnings in the year to June 30 rose 27 per cent to 816 million.
“This result was driven by strong global demand and improved spreads, particularly in export markets where higher global steel prices offset rising raw material costs,” said chief executive Paul O’Malley.
He predicted a strong first half for the firm’s current financial year, mainly driven by continued strong global steel demand and prices.
BlueScope’s businesses in Thailand, Malaysia, Indonesia, India and Vietnam were “going well,” he said.
“Our Asian businesses, particularly Thailand, where economic conditions continue to improve, are producing consistent results,” he said.
“In the next five years, there’s no reason why demand can’t stay strong due to BRIC (Brazil, Russia, India, China) economies,” he said.
“In China ... there may well be some slower growth but demand for steel continues to very strong. And we've still got Russia and India going flat out.”
In February, the company wrote down 253 million, including 190 million for the value of its coating facilities at Suzhou, China, and 35 million for its Vietnamese coating unit.
BlueScope declared a final dividend of 27 cents a share, taking the total dividend for the year to 49 cents, up four percent from the previous year.
BlueScope shares were down five cents to 9.08 in early afternoon trade.