Rural sector boosts Steel & Tube

By ELLEN READ

Steel & Tube Holdings has posted a net June-year profit of $14.89 million, compared with $14.27 million for the previous 13-month period. On a comparative basis for the 12 months to June 2000, net profit increased by $1.55 million or 11.6 per cent.

The improved result was a result of the steel distribution and processing operations in New Zealand, which benefited from the increased demand for its products by the rural and manufacturing sector, the company said. A fully imputed dividend of 9c per share will be paid on September 7.

Steel & Tube, just over half-owned by OneSteel of Australia, said market demand for steel products was mixed over the year, with strong demand from the rural sector and export focused manufacturers more than offset by a weak domestic economy.

Sales and profits from the reinforcing and roofing products business were lower than the previous year as a direct result of reduced activity in the building sector.

Its Canadian subsidiary, AJ Forsyth, was affected by a weakened economy, suffering reduced sales and volumes for the year. Activity there is expected to remain at present levels initially, then pick up.

Steel & Tube shares closed yesterday down 1c at $1.97.