OneSteel Limited (OST) reported a net profit after tax of $230 million for the year to 30 June 2009, a 6% dip from 2008. The company also noted the underlying profit for the year was above guidance, despite being 32% down at $215 million.

Managing director and CEO, Geoff Plummer said the result came despite a significant slow down in the domestic and international markets in the last three quarters of the year.

“After delivering a solid first half result overall, we were breakeven at the NPAT line for the second half reflecting weaker demand, lower prices and higher unit costs, due largely to the GFC,” Mr Plummer said.

Looking ahead, the company said there appeared to be a grass-roots recovery in the steel markets, though was coming off a particularly low base.

The company cautioned that only a modest improvement in conditions could be expected in the near term.

Onesteel noted that the international governments’ responses to the global financial crisis would spur growth in non-residential and engineering construction, while manufacturing and rural sectors would remain ‘soft’.

Meanwhile, the company said destocking was largely complete, however there remained an oversupply of steel in the global market, which would affect prices and margins.

In the longer term the company said it remained confident the fundamentals for its key domestic and international market segments were sound.

”However, prices are expected to improve over the longer term though unlikely to reach the highs of 2008,” the company said.

”We expect domestic steel prices to remain relatively high, underpinned by elevated steelmaking input prices, but continue to be volatile.”

Looking at the company’s results for the year, Onesteel said sales revenue dropped a modest 3% over the year to $7.24 billion, largely due to a strong September 2008 quarter.

EBITDA for the year, however, fell 18% to $597 million.

The company’s iron ore division achieved its target of 5 million tones for the year, though revenue was down as spot prices remained under sustained pressure. EBIT decreased 24% to $162 million for the year.

The recycling division was breakeven for the second half of the year, however writedowns stemming a slump in the price of ferrous and non-ferrous scrap.

The company also highlighted its ‘back-to-basics’ response to the global financial crisis.

“To brace our position against the downturn, we introduced a number of initiatives including adjusting production and operating levels, lowering inventory levels and reducing our cost base,” the company said.

“These steps commenced in December and led to a 25% reduction in total rawsteel production for the year to 2 million tones.”

Yesterday, rival Bluescope steel reported a loss of $66 million, sending shares in that company more than 6% lower.

The OneSteel Board announced an unfranked final dividend of 4c per share, bringing the total dividends for the 2009 financial year to 10c.

At the close of business Monday, Onesteel shares were down 16c to $2.98.