BlueScope plunges on bad news

BLUESCOPE Steel shares have slid more than 20 per cent despite its full-year profit more than doubling, after the company offered a rare cloudy outlook and announced the exit of its long-time chief.

The share plunge wiped more than $1.7 billion from BlueScope’s market value.

The steelmaker expects underlying earnings in the first half of this financial year to be about 80 per cent of the sum reported in the six months to June. Several macro factors, including higher scrap prices in the US, lower steel margins in the Australian market and escalating energy costs were expected to weigh on growth during the period, it said.

The company also revealed it was under investigation by the competition watchdog for potential cartel conduct relating to the supply of steel products in the domestic market between late 2013 and mid-2014.