BlueScope steel has swung back into the black for the first time in more than three years, posting a $3.7 million net profit for the six months to December 31.
The tiny profit was a turnaround from the company's 23.8 million loss in the same period a year earlier.
The steelmaker's underlying profit also swung back from a loss of $1.6 million in the first half of the 2013 financial year to a profit of $49.1 million in the latest results.
BlueScope's return to profit came from higher sales in Australia, particularly in the building products segment, as well as thanks to the Australian dollar's fall in recent months.
The company's sales revenue from continuing operations rose 8 per cent to $3.98 billion for the half, and BlueScope says many of its divisions managed to increase profit margins on their products.
BlueScope's managing director Paul O'Malley says the profit may be small, but its a very welcome turnaround.
"It's the first half in a long long time that we've reported a profit. Although small at $3.7 million, it is nearly a $30 million improvement on the first half, and our underlying net profit after tax was $49.1 million, a $50 million turnaround," he said.
"We're certainly on the road to recovery, and it's satisfying to be able to stand before you today and report a profit."
Mr O'Malley says it is a good platform for future performance.
"We have stabilised the business, laid the foundations for growth, made measured investments, and achieved this while maintaining a conservative balance sheet," he said.
The company is not expecting a rapid further improvement in its bottom line, saying its underlying second half profit should be similar to the first half result.
Mr O'Malley says he would like to see the Australian Government shift to more business-friendly policies, like the US, and he feels that process is underway.
"In the United States there's low-cost energy, there's flexible labour that are easy to work with and there's absolutely pro-business policies because that's seen to be good for the economy and for jobs," he argued.
"If that were translated to Australia I think we'd see even more improvements in Australia. My view at the moment is that's where Australia's focussed."