Steel & Tube's profit springs to new highs

Steel & Tube's annual profits have sprung to new highs on what it saw as a surprisingly buoyant economy.

The country's largest distributor of steel roofing, pipes, wire products and metal fasteners said yesterday that its annual net profit had risen $7.6 million or 27 per cent to $36.1 million.

Revenue climbed 13 per cent to $438 million in the result, a record for the company.

"The economy during the last 12 months was more buoyant than expected," chief executive Nick Calavrias said.

Despite a slowdown in residential building during the period, total construction grew substantially on the back of a 30 per cent increase in commercial construction.

Overall, demand for the company's products was not dissimilar to last year, and revenue growth was mainly attributable to raw material price increases.

Calavrias said the firm was well placed for another solid result next year because a weaker dollar was likely to make up for a softening residential housing market.

"Providing that there is no significant change to the economy or further volatility in international steel prices, there is an expectation that the company will be able to post another solid result next year."

Steel distribution and processing and roofing were its best performing divisions.

Roofing operations continued to benefit from strong demand from the housing sector.

Shares in Steel & Tube closed up 5c at $4.90.

- additional reporting: NZPA