MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION DETAILS
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Name : |
BLUESCOPE STEEL LIMITED |
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Registered Office : |
11, |
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Country : |
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Date of Incorporation : |
15.03.1921 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturers and suppliers of all flat steel products. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
REGISTERED NAME
BLUESCOPE STEEL LIMITED
INCORPORATED
15 March 1921
REGISTERED ADDRESS
11,
MELBOURNE, VIC 3000
SHARECAPITAL
$2,417,587,563
SHAREHOLDERS
JP Morgan Nominees
Australia holds 94,087,910
Westpac Custodian
Nominees holds 86,815,497
ANZ Nominees holds 29,155,040
Citicorp Nominees holds 19,861,866
RBC Dexia Investor
Services holds 12,805,229
Queensland
Investment Corp holds 10,060,744
IOOF Investment
Management holds 7,181,784
AMP Life Limited holds 5,498,139
HSBC Custody
Nominees holds 5,124,734
IAG Nominees P/L holds 4,815,121
DIRECTORS
GROLLO,
Daniel Bruno
8003, 7
SOUTHBANK,
VIC 3006
TAN, Yam
Pin
Resident
overseas
MCCANN,
Harry Kevin
MOSMAN, NSW
2088
MCNEILLLY,
Ronald John
6,
TOORAK, VIC
3142
RIZZO, Paul
John
BALWYN, VIC
3103
ADAMS,
Kirby Clarke
11,
MELBOURNE,
VIC 3000
GRADY,
Diane Jennifer
NORTHBRIDGE,
NSW 2063
KRAEHE,
Graham John
20,
MELBOURNE,
VIC 3000
SECRETARY
BARRON, Michael Geoffrey
BUSINESS STRUCTURE
HEAD OFFICE Level
11,
MELBOURNE, VIC 3000
POSTAL ADDRESS
MELBOURNE, VIC 8003
TELEPHONE (613) 9666 4000
FACSIMILE (613) 9666 4111
BACKGROUND
The subject was incorporated in
The subject has
origins that date back to The Broken Hill Proprietary Company Limited, founded
in 1885 to mine silver, lead and zinc deposits in far western
In 1918 John
Lysaght (
Australian Iron
& Steel Limited (AIS) was formed in 1928 to operate a steelworks at Port
Kembla in
AI&S was
acquired by BHP in 1935. John Lysaght (
New Zealand Steel
was founded in 1968 to convert the rich iron sands of Waikato North Head, near
Excess global
steelmaking capacity caused BHP to close the loss-making Newcastle Steelworks
in 1999.
In October 2000, the
long products components of BlueScope Steel's business - including the Whyalla
Steelworks, the downstream market mills which continued to operate in
In March 2001, BHP
announced two major decisions: that it was merging with the Anglo-African
mining house Billiton plc to form a dual-listed company called BHP Billiton;
and that BlueScope Steel was to be spun out as a separate Australian publicly
listed company.
BlueScope Steel
Limited (formerly known as BHP Steel) was ultimately listed on the Australian
Stock Exchange on 15 July 2002.
In April 2004,
BlueScope Steel acquired Butler Manufacturing in the
OPERATIONS
The subject
operates as is the leading steel company in
The subject
specialises in the production of flat steel products, including slab, hot
rolled coil, cold rolled coil, plate, tin plate and value-added metallic coated
and painted steel products. The steelworks at Port Kembla in
Within Australia,
the BlueScope Lysaght business rollforms and supplies a range of steel building
products, including roof and wall cladding, steel house framing, rainwater
products such as guttering and downpipes, fencing, structural products such as
purlins and flooring systems, meshes and walkways, and home improvement
products.
ADVERSE
A search of the of Credit Advantage Limited failed to trace any litigation listed against the subject at that date.
FINANCES
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2006 the subject recorded revenue of $8,031,500, which resulted in an operating profit before tax of $468,600 and an operating profit after tax of $342,800,000 representing a Net Profit Margin of 4.27%.
Below is a summary of the subject’s income results for the past two financial years.
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Bluescope Steel Ltd - consolidated |
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As at 30 June 2006 |
As at 30 June 2005 |
Change (%) |
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Revenue |
$8,031,500,000 |
$7,965,300,000 |
0.83% |
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Profit b/tax |
$468,600,000 |
$1,316,300,000 |
-64.40% |
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Profit a/tax |
$342,800,000 |
$982,000,000 |
-65.09% |
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Net Profit Margin |
4.27% |
12.33% |
-8.06% |
During fiscal 2006, the subject recorded Net Cashflows from operating activities totalling $231,700,000.
On 17 August 2006, the subject announced that it had acquired approximately 19.9% of the shares in Smorgon Steel for a cost of $319 million.
As at 30 June 2006, the subject recorded total current assets of $2,741,500,000. They included cash of $61,900,000, receivables of $1,319,200,000 and inventories of $1,270,200,000.
Current liabilities at the same date totalled $2,260,000,000 and included payables of $957,600,000 and interest bearing liabilities of $689,700,000.
As at 30 June 2006, the subject recorded Working Capital of $481,500,000 and a current ratio of 1.21 to 1 indicating sound liquidity levels.
Net Assets totalled $3,084,900,000 as at 30 June 2006. At this date, the subject further recorded a Debt to Equity ratio of 1.35 to 1.
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Bluescope Steel Ltd - consolidated |
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As at 30 June 2006 |
As at 30 June 2005 |
Change (%) |
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Revenue |
$8,031,500,000 |
$7,965,300,000 |
0.83% |
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Profit b/tax |
$468,600,000 |
$1,316,300,000 |
-64.40% |
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Profit a/tax |
$342,800,000 |
$982,000,000 |
-65.09% |
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Net Profit Margin |
4.27% |
12.33% |
-8.06% |
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Current Assets |
$2,741,500,000 |
$2,329,000,000 |
17.71% |
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Non Current
Assets |
$4,519,100,000 |
$4,056,700,000 |
11.40% |
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Total Assets |
$7,260,600,000 |
$6,385,700,000 |
13.70% |
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Current
Liabilities |
$2,260,000,000 |
$1,780,400,000 |
26.94% |
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Non Current
Liabilities |
$1,915,700,000 |
$1,344,900,000 |
42.44% |
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Total Liabilities |
$4,175,700,000 |
$3,125,300,000 |
33.61% |
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Net Assets |
$3,084,900,000 |
$3,260,400,000 |
-5.38% |
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Working Capital |
$481,500,000 |
$548,600,000 |
-12.23% |
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Current Ratio |
1.21 |
1.31 |
-7.27% |
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Debt to Equity |
1.35 |
0.96 |
41.21% |
TRADE SURVEY
During the current investigation, contact with the subject’s principals was unable to be established.
Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in
The subject has
origins that date back to The Broken Hill Proprietary Company Limited, founded in
1885.
The subject was
ultimately listed on the Australian Stock Exchange on 15 July 2002.
for the financial year ended 30 June 2006 the subject recorded revenue of $8,031,500, which resulted in an operating profit before tax of $468,600 and an operating profit after tax of $342,800,000 representing a Net Profit Margin of 4.27%.
During fiscal 2006, the subject recorded Net Cashflows from operating activities totalling $231,700,000.
As at 30 June 2006, the subject recorded Working Capital of $481,500,000 and a current ratio of 1.21 to 1 indicating sound liquidity levels.
Net Assets totalled $3,084,900,000 as at 30 June 2006.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)