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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news