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

 


Steel & Tube lifts profit 15% buoyed by Tata Steel purchase

Steel & Tube lifts profit 15% as Tata Steel acquisition boosts sales

By Suze Metherell

Aug. 15 (BusinessDesk) - Steel & Tube, which manufacturers steel building products, lifted annual profit 15 percent as its sales were boosted from its April purchase of a stainless steel goods maker.

Profit rose to $17.9 million, or 20.4 cents a share, in the 12 months ended June 30, from $15.6 million, or 17.8 cents, a year earlier, the Lower Hutt-based company said in a statement. Sales increased to $441.4 million from $393 million, in part boosted by a $12.9 million contribution from its new business, S&T Stainless.

The company bought Tata Steel (Australasia), the local division of the Indian manufacturer now renamed S&T Stainless, for $28.1 million in April, giving it market share of stainless, engineering steel and floor decking products in New Zealand.

Steel & Tube is a key beneficiary of building activity in Auckland and the Canterbury rebuild, particularly in the CBD rebuild which will use more steel. In anticipation of increased activity it had invested in new plants and equipment, including two in Auckland and one in Palmerston North. The company is also part of government infrastructure projects, including the Auckland Waterview Connection, Wellington's National War Memorial Park and underpass and Burwood Hospital in Christchurch.

"Economic activity, and consequently volumes, improved across most sectors although competition remains intense, restraining margins," chief executive Dave Taylor said. "Globally the steel industry remains challenged: over-capacity is a continuing issue alongside increasing geopolitical risks and reducing economic forecasts across several regions."

The company didn't give specific guidance, but Taylor said economic activity across the country would see Steel & Tube "continue to deliver improving results".

It announced a final dividend of 9 cents, payable on Sept. 30 with a Sept. 12 record date, from 8.5 cents the previous year.

Shares of Steel & Tube last traded at $2.90, and have risen 13 percent over the past 12 months. The stock has an average recommendation of 'sell' based on four analysts surveyed by Reuters, with a median price target of $3.16.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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