Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Steel profit down 26.7%, production costs outstrip sales

NZ Steel profit down 26.7% as production costs outstrip revenue growth

Jan. 9 (BusinessDesk) - The holding company for the New Zealand Steel mill at Glenbrook, near Auckland, has posted a 26.7 percent drop in tax-paid earnings in the year to June 30, according to Companies Office records filed before shortly before Christmas.

Profit fell to $95.3 million from $126.4 million a year earlier, the bare bones accounts for Tasman Steel Holdings show. The company increased total sales by 3.8 per cent to $878.1 million in the 12 months to the end of June last year, but cost of sales rose 8.6 percent, resulting in a 28.7 percent drop in gross profit to $77.5 million.

That was despite an unexplained near halving of administration expenses to $24.9 million in the year under review, from $42.7 million in the previous year.

On a comprehensive income basis, the Tasman Steel business reported a loss of $49.5 million, compared with a profit of $73.1 million a year earlier, reflecting an actuarial revaluation of the company's pension fund that knocked $165.6 million off its previous value. The change is not a cash item.

The accounts also disclose a $1.1 million dividend payment to Australian parent Bluescope during the year, using accumulated funds.

NZ Steel chief executive Simon Linge could not be reached for comment by time of publication.

However, he told BusinessDesk last September he was chasing a "stretch target" to treble profits over the next five years, although that would be "challenged" by falling global steel prices.

Earnings from the New Zealand operation come mainly from fulfilling demand from the domestic market, with direct exports of unprocessed Taharoa ironsands a further significant revenue source.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news