Good times for Steel & Tube

By GEORGINA BOND


The good times have continued for Steel & Tube Holdings, which yesterday reported a strong first quarter at its annual meeting in Wellington.

Chief executive Nick Calavrias said the conditions that produced last year's record annual profit of $28.4 million had carried through to the first quarter.

The rate of earnings in the quarter was slightly up on earnings of $15 million in the second half of last year, he said.

A strong trading environment, a better sales mix, cost-savings and production efficiencies had helped this profit result, which was considerably ahead of the same period last year.

The top-30 company's full-year profits were boosted $6.94 million to the record result on the back of the building boom, beating estimates of $27 million to $28 million.

Calavrias reconfirmed the company's forecast for a similar result this year, with some upside.

He expected the economy to remain strong throughout the year, and commercial construction and rural demand for products such as fencing systems and nails to compensate for any cooling in the housing market.

But "we have not seen any slowdown in housing yet, or of the businesses that feed off housing activity".

Trading conditions remained strong across all the company's four business units.

Shares in Steel & Tube dropped 3c to close at $4.62 yesterday.