Steel & Tube stays positive

Steel & Tube Holdings expects another solid result this year, and has achieved slightly higher first-quarter steel margins despite weaker sales, the company said at its annual meeting yesterday.

Steel-price volatility was expected to continue in the short term, but global demand and the New Zealand dollar should boost prices in the domestic market, Steel & Tube chief executive Nick Calavrias said.

"The trading environment is expected to remain volatile throughout the year. However, I have confidence that the company will be able to meet these challenges and post another solid result this year," Calavrias said.

A slowing economy was likely to hit the building sector, which was strong overall but was expected to soften throughout the year, he said.

The strong New Zealand dollar was causing pain for the manufacturing and export sectors, propped up by high interest rates.

"The respite in June, when the New Zealand dollar collapsed against the US and Australian dollars to US59c and A81c respectively, was shortlived and it is once again floating around the 66c and 88c marks," Calavrias said.

Steel & Tube posted a 20 per cent decline in June year net profit to $30.8 million, down from the previous year's record. Its shares were steady at $4.70.

- NZPA