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

 

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news