OneSteel is blaming the global financial crisis after announcing a six per cent fall in net profit for 2008/09.
OneSteel posted net profit of $230 million for 2008/09, slightly above the $200 million forecast in company guidance in April.
The company said in a statement that its underlying net profit was $215 million, down 32 per cent on the previous financial year.
The company announced an unfranked final dividend of four cents per share.
OneSteel chief Geoff Plummer said in a statement that the financial year had begun strongly, but demand fell away.
"The last three quarters were affected by a substantial deterioration in both domestic and international market conditions due to the effects of the global financial crisis," Mr Plummer said.
The company said it was encouraged by recent improvements to outlook but domestic conditions remained challenging.
"We are seeing a small but steady increase in domestic demand from increased activity, but this is off a low base.
"De-stocking through the channel now appears to be complete and stocks seem now to be generally at relatively low levels."
OneSteel said it would not provide earnings guidance for the current financial year due to a "high level of uncertainty" concerning foreign exchange rates, prices and the rate of economic recovery.
"International prices for steel and steelmaking inputs are expected to remain volatile," the company said.
"However, while not reaching their 2008 highs, prices are expected to improve over the longer term."
In early trading, OneSteel was seven cents higher, or by 2.35 per cent, at $3.05.
