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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news