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

 


Steel & Tube 1H profit down 33% but upbeat about second half

Friday 17 February 2017 09:48 AM

Steel & Tube 1H profit down 33% but upbeat about second half

By Rebecca Howard

Feb. 17 (BusinessDesk) - Steel & Tube Holdings, the NZX-listed steel products distributor, reported a 33 percent drop in first-half profit, hurt by a decline in non-residential construction, but expects things to pick up in the second half.

The company said profit fell to $10.6 million in the six months ended Dec. 31 from $15.9 million in the same period a year earlier.

"This is against a volatile global steel and intensely competitive domestic trading landscape," said chief executive Dave Taylor. He noted that while residential construction activity improved, non-residential construction by floor area dropped by 20 percent in the year to December, contributing to domestic steel volumes remaining some 13 percent to 15 percent below the peaks experienced in 2004/05.


Revenue from ordinary activities fell 4 percent to $254.5 million while profit before tax was $14.6 million, down 27 percent on the prior period.

The company said it would pay an interim dividend of 9 cents per share on March 31, unchanged from the same period a year earlier.

Regarding specific divisions, Taylor said profitability was impacted by $1.2 million after tax as S&T Plastics increased capabilities ahead of several contract commitments worth more than $27 million in calendar 2017. Its recent addition, Composite Floor Decks Ltd. had two strong trading months, he said.

Looking ahead, Taylor said he expects the second half of the year to be stronger than the first, reflecting the pricing opportunity. He also noted that contracts recently awarded to S&T Plastics, the benefits of cost reduction and CFDL performance through the next six months will deliver improved earnings.

The shares last traded at $2.62, and have gained 43 percent over the past year.

The company also announced that John Anderson was retiring as board chairman. He was first appointed director in 2011 and became chairman in late 2012. Susan Paterson, who joined the board on Jan. 16 will replace Anderson as chairman, effective immediately.

(BusinessDesk)

ends

© 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:

f work for Pumpkin Patch staff

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:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news