The holding company for the New Zealand Steel mill at Glenbrook, near Auckland, has posted a 26.7 per cent drop in tax-paid earnings in the year to June 30, according to Companies Office records filed before shortly before Christmas.
Profit fell to $95.3 million from $126.4 million a year earlier, the bare bones accounts for Tasman Steel Holdings show. The company increased total sales by 3.8 per cent to $878.1 million in the 12 months to the end of June last year, but cost of sales rose 8.6 per cent, resulting in a 28.7 per cent drop in gross profit to $77.5 million.
That was despite an unexplained near halving of administration expenses to $24.9 million in the year under review, from $42.7 million in the previous year.
On a comprehensive income basis, the Tasman Steel business reported a loss of $49.5 million, compared with a profit of $73.1 million a year earlier, reflecting an actuarial revaluation of the company's pension fund that knocked $165.6 million off its previous value. The change is not a cash item.
The accounts also disclose a $1.1 million dividend payment to Australian parent Bluescope during the year, using accumulated funds.
