Steel plate supplier Bisalloy Steel Group Ltd expects earnings in the current financial year to rise by up to 50 per cent.

“When we announced our FY2011 (2011 financial year) results in August, we stated that the group expected another significant improvement in earnings in FY2012,” Bisalloy chairman Phillip Cave told shareholders at the company’s annual general meeting in Sydney on Monday.

“I am now pleased to announce that, assuming trading conditions remain as envisaged, we expect an increase in earnings in FY2012 in the range of 40 per cent to 50 per cent.”

Mr Cave said Bisalloy’s sourcing from both domestic and overseas suppliers and marketing initiatives aimed at increasing the group’s ability to service the Australian domestic market, should enable Bisalloy to continue to compete effectively in target markets.

Bisalloy lifted earnings before interest, tax, depreciation and amortisation (EBITDA) by 37 per cent to $7.8 million in the 2010/11 financial year.

Mr Cave said a joint venture in China with Jinan Iron & Steel Co for the production and sale of quench and tempered steel plate had secured its first orders from Chinese customers.

It was manufacturing the orders for delivery in late November and December.

“The board believes this joint venture can deliver a significant improvement in shareholder returns, following the initial ramp-up during the current financial year,” Mr Cave said.

Shares in Bisalloy closed 2.5 cents higher at 24 cents on Monday.