Steel and Tube posts 27 per cent profit rise

Lower Hutt-based steel distributor Steel and Tube Holdings today reported a 27 per cent rise in annual profit.

The company posted a record net after tax profit of $36.1 million for the year to June 30. Revenue climbed 13 per cent to $438 million.

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

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

Shares in Steel and Tube, which processes and distributes steel roofing and pipes, wire products and metal fasteners, rose 5c to $4.90 on the news.

Mr Calavrias said the firm was well-placed for another solid result next year, with a weaker New Zealand dollar 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 and Tube will pay a final dividend of 17cps on September 9.

- NZPA