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

 

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO:

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO: