The article below indicates how the 10 year high dollar may affect bluescope - for the preiod of the recent results of Jul-Dec 2006 the AUD was around $US0.76 . Wonder if this is the same for SSX?
Now its above $US0.80!
if the same is true below then does that translate to a expected profit variation (just from the exchange rate alone leaving aside the cooling housing markets and rising iron ore costs) of a reduction by $18m *4 = $72m.
from the http://www.smh.com.au/news/Business/BlueScope-mulls-raw-material-surcharges/2005/02/21/1108834707517.html
BlueScope said the rising Australian dollar would also have an impact on the 2004/05 results.
Every one cent movement in the Australian dollar against the US exchange rate would have an $18 million impact on BlueScope's forecast 2004/05 EBIT.
A $1 a tonne movement in coal costs would impact the group's EBIT by $5 million while a $1 a tonne movement in iron costs would slash another $10 million off pre-tax earnings.
SSX
smorgon steel group limited.
