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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news