BlueScope Steel's (ASX:BSL) fiscal first-half underlying earnings before interest and taxes (EBIT) exceeded expectations, driven by strong performances in its Australian Steel Products (ASP) and Buildings and Coated Products North America divisions (BCPNA), and the impact of a new cost saves program, according to a Monday note by Jarden Research.

Underlying EBIT came in at AU$308.8 million, at the upper end of the company's revised guidance range of AU$270 million to AU$310 million and 3% higher than Jarden Research's forecast of AU$300 million.

The ASP division exceeded expectations with an underlying EBIT of AU$131 million, boosted by higher-margin Colorbond share gains, flat demand, and lower coal costs, offsetting higher energy costs, Jarden said.

The company's BCPNA division posted an underlying EBIT of AU$119 million, beating market estimates of AU$90 million, despite a loss in the Coated Products business due to low asset utilization, Jarden added.

Jarden believes that Bluescope needs sustained returns of $75 million in EBIT from the Coated Products acquisition to justify the purchase price.

Bluescope said it expects underlying EBIT to range between AU$360 million to AU$430 million, with strong results in Australia and Asia but weaker performance in its North Star division in North America and the US Coated & Painted segments.

Jarden Research has a neutral rating on BSL and a price target of AU$21.80.