{"streaming_server":"rtmp:\/\/s2svek4dh1hfyu.cloudfront.net\/cfx\...

.

OneSteel Ltd (ASX:OST) has downgraded its earnings guidance by around $30 million for the second half of the 2011 financial year.  

Net profit is now expected to be broadly in line with the company’s first half result of around $120 million.



The steel maker says the revision is due 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.

OneSteel had previously forecast a full year profit of $270 million.



However, the company says a high level of uncertainty around foreign exchange rates, prices and demand for steel in addition to adverse weather conditions have resulted in the lowered guidance. 

In the six months to 31 December 2010, OneSteel reported a half year net profit of $119.5 million.