earnings

ASX RELEASE
10 May 2011
EARNINGS GUIDANCE
(ASX:OST) OneSteel Limited today announced that while there is still a relatively
high level of uncertainty around key factors impacting OneSteel�s earnings, including
the foreign exchange rate, domestic and international prices and demand for steel,
and steelmaking inputs, the company expects second half Net Profit After Tax
(NPAT) to be broadly in line with statutory NPAT for the first half of the 2011 financial
year of $116 million.
Prior to today�s announcement, OneSteel was expecting NPAT for the 2011 financial
year to be around $270 million, which is broadly equivalent to statutory NPAT for the
previous financial year plus the contribution from the recently acquired Moly-Cop
mining consumables business. Today�s revision is due primarily to the impact of the
rapid appreciation of the Australian dollar, including an adverse impact on domestic
steel margins and volumes and on iron ore Australian dollar revenue. In addition,
iron ore operations have been affected by adverse weather through the second half
which is now expected to impact shipments and the proportion of medium grade ore
sales. OneSteel now expects iron ore sales volumes to be approximately 6 million
tonnes for the financial year.
ENDS