OneSteel Ltd. has posted a decline of around 49% in the net profit for the first half but also the results beat the analysts' expectation. OneSteel, the iron and steel producer, posted the first half net profit to A$117.4 million decreasing by 48.6% as in the same period last year the company posted net profit of A$228 million.

Though this result seems to be a disappointing one, it has something to cheer for OneSteel as results beat the analyst expectations, which ranged from A$50 million to A$100 million. The underlying net profit for H1 was posted A$119 million, decreasing by 45% from the A$215 million in the same period last year.

The company also released its outlook for the remaining 2010 financial year and sees it very challenging. According to the guidance given by OneSteel, its net profit in the second half to be broadly in line with the first half. The company is expecting a full year profit of about A$235 million.

The company also said that the prices could rise in the near future because of the higher input costs as the prices for iron ore and coking coal are likely to be increased. Also the Chinese demand drove further growth and it would cause to higher steel prices.