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

 


Home-building, Christchurch lift Steel & Tube 1H profit 10%

Home-building, Christchurch and rural upturn lift Steel & Tube 1H profit 10%

Feb. 20 (BusinessDesk) – Steel products manufacturer Steel & Tube lifted earnings 10 percent in the six months to Dec. 31, turning in a tax-paid net profit of $8 million on a 6 percent lift in sales to $211.7 million.

However, margins remain tight and despite the Christchurch rebuild, booming residential construction and a strong rural sector, the company warns the steel market remains highly competitive. It held margins during the period, but improved performance came from volume growth.

Directors declared a fully imputed interim dividend of 7 cents per share, payable on March 31.

Despite improved NPAT, the company showed negative cashflow of $4.5 million for the six months, compared with positive cashflow of $1.2 million for the same period a year earlier, driven in part by a 13.2 percent lift during the period in payments to suppliers and employees, totalling $214.2 million. Customers’ receipts in the period rose 3.5 percent to $216.9 million.

Cash and cash equivalents at the end of the period were negative $8.1 million, compared with a positive cash position of $2.4 million a year earlier.

“During the first half, we began to see further evidence of the beginnings of economic recovery,” said chief executive Dave Taylor in a statement to the NZX. “Indicators and sentiment suggest that New Zealand may be on the cusp of a marked economic turnaround.”

However, the company noted a “disconcerting” 9.9 percent reduction in the value of non-commercial building consents in the December quarter last year.

In anticipation of increased activity, the company has made “substantial investments”, including new plant and equipment to boost wire processing and roofing capacity in Christchurch.

“For Steel & Tube to remain competitive, new investment and greater labour flexibility is critical,” said Taylor.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news