q1 profit 430m second half challenging

Sydney - Thursday - October 30: (RWE Aust Business News) -
Bluescope Steel Ltd (ASX:BSL) has reported an unaudited first quarter
underlying profit after tax of approximately $430 million.
Managing director and CEO Paul O'Malley said the company has had
a very good start to FY09 due to strong global steel demand and prices.
"In this opening quarter, the business outperformed the first half
result of last year, despite increases in iron ore, coal and scrap
prices.
"However, current economic conditions suggest a challenging
second half," he said.

Global Outlook:
Commenting on the current economic climate and the second half
FY09 outlook, Mr O'Malley said that while Bluescope expects the
significant pressures in the world economy to have an impact on second
half results, investors should look beyond the short term for
underlying drivers of steel growth.
"A range of independent data points to the ongoing urbanisation
and industrialisation in China. These will be the principal drivers of
growth and they still have a long way to run," he said.
"In addition, the global steel industry is responding to the
current environment with production cuts.
"Combined, these factors are likely to produce beneficial
knock-on effects for the global steel sector and Australia," Mr O'Malley
said.