(Reuters) - Australia's BlueScope Steel Ltd said on Monday its underlying earnings surged in the first half, but cautioned that its second half performance would be softer.
The steelmaker said its best half on record was driven by strong demand and steel spreads in its U.S. and Australasian markets.
The company reported a 62 percent jump in underlying EBIT (earnings before interest and tax) to A$849.6 million, up from A$524.2 million a year ago.
Bluescope forecast a 10 percent rise in full year EBIT, which would imply EBIT of around A$1.396 billion, just below broker forecasts of A$1.44 billion, according to Refinitiv estimates.
It said economic activity in China, its second biggest market by revenue, slowed due to trade tensions with the United States, and the Chinese construction market softened due to tighter local credit conditions and weaker infrastructure spending - a key segment for steelmakers.
The company announced an interim dividend of six cents per share.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Richard Pullin)
