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

 

Profits lift for New Zealand’s biggest steel distributor

Steel & Tube press release following today's Annual Meeting

THURSDAY, NOVEMBER 12, 2015


Profits lift for New Zealand’s biggest steel distributor

Steel & Tube, New Zealand’s biggest steel distributor, posted sales of $502 million for the year ending June 2015, with after-tax profits up by 20% to $21.4 million.

“It’s been a significant year for S&T,” CEO Dave Taylor told shareholders at the Company’s Annual Meeting. “We have focused our efforts on enhancing efficiency and strengthening our core business.”

S&T has recently opened three purpose-built facilities: two in Auckland (an area that presents around one-third of domestic steel demand) at Savill Drive and Highbrook, and one in Palmerston North. Their completion marks a key milestone in S&T’s extensive $30-million One Company reinvigoration programme, putting it at the forefront of New Zealand’s steel distribution and processing sector.

In August and September the Company announced the acquisition of MSL, distributors of Fortress Fasteners, and large bore polyethylene pipe companies, Aquaduct and Bosch.
Board Chairman Sir John Anderson said the acquisitions will take S&T into new and exciting territory as well as helping to off-set volatility in the commercial steel market, and a moderating New Zealand economy.

During his speech to investors, Mr Taylor warned that increasing low-priced steel exports and imported pre-fabricated steel was putting New Zealand’s steel industry under pressure, adding: “Finished steel prices are now at their lowest level for almost 13 years.

“Chinese exports have increased by 38% in the year ending September 2015 and will likely exceed 100 million tonnes this year. Putting this into perspective, New Zealand’s demand across all steel products is less than 1 million tonnes a year.”

Mr Taylor pointed out that many jurisdictions have introduced anti-dumping legislation to help protect their steel industries, increasing the focus on those countries where such actions are not being pursued, such as New Zealand. He cited the recent number of steel mill closures in the UK and the activities of BlueScope in Australasia as examples of the impact that low-priced exports is having on global steel manufacturing.

“What’s not appreciated is that these lower steel prices have a significant impact on distribution margins, too. With the decrease in steel prices over the past three years, New Zealand’s entire steel distribution profitability is estimated to have reduced by $45 million compared to three years ago.”

The issue, he said, had accelerated in the past 12 months, impacting the second half of the 2015 fiscal year.

Looking towards this full-year’s results, the profit impact will be off-set by the acquisitions. Notwithstanding this, continuing global steel dynamics mean the first half results are likely to be lower than December 2014.

[Ends]

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>

ALSO:

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:



Auckland Airport: Thousands Of Kiwis Travelling For Queen’s Birthday Weekend


Confidence in domestic travel is beginning to steadily ramp up, with thousands of Kiwis travelling within New Zealand for Queen’s Birthday.
Nearly 400 flights will be operating to and from Auckland Airport over the long weekend... More>>

ALSO:

Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO: