Australian long products steel producer OneSteel Limited (OST)...

Australian long products steel producer OneSteel Limited (OST) today said it now expects operating net profit for the 12 months ended June 30, 2004, to be in the range of $102 million to $107 million. This compares with a forecast range of $78 million to $90 million flagged by the company in February.

It also said total net profit is now expected to be $122 million to $127 million with the addition of a tax benefit estimated at $20 million.

OneSteel advised that the improved profit outlook is due to "very" strong trading in months of May and June coupled with a property sale that settled in late June and added $8 million to profit after tax.

SHAW Stockbroking’s head of resources, John Colnan said the result was 5% above expectations.

"The profit upgrade is pleasing and demonstrates OneSteel are extracting better pricing for their product range in the market."

The company concluded that its magnetite ore feasibility study results are currently being assessed and a statement is expected to be released with its full year results on August 17.

OneSteel closed down 6c yesterday to $2.50.