OneSteel Limited OneSteel Grinding Systems (OGS ... - Arrium

Business conditions• The business has a strong market position, well positioned to accesspeddler trade and is heavily influenced by residential construction activityand household spending.• Key indicators have been steadily improving• Consumer spending increasing• Automobile sales improving although still low by recent standards• Homebuilding (although mortgage finance remains tight)• Manufacturing activity – orders up, rehiring, increased transport activity• Unemployment remains an exception with rates historically high• The Florida markets were hit hard by the triple threats of high debt, highunemployment and a free-falling housing market, but recent indicatorsshow:• Housing starts are rising again• Unemployment peaked at 12% and is predicted to fall to 8% by 2013• The Gross State Product (GSP), a measure of goods and services produced inFlorida, is expected to expand 2.1% this year after contracting the past two years• Maine has had four consecutive quarters of overall economic growth andthree solid months of employment gainsSources include US Federal Reserve Board6