Steel & Tube posts 23pc profit gain

Steel & Tube increased its annual net profit by 23 per cent to $18.28 million on revenue down 15 per cent to $330.6 million.

The steel products company will pay a fully imputed 10c a share dividend on September 6, compared with 9c last year.

Although revenue fell after the sale of Steel & Tube's Canadian joint venture A.J. Forsyth last October, chief executive Nick Calavrias said sales at the company's New Zealand operations rose 8 per cent.

The increase included revenue from Pipeline Supplies New Zealand, acquired in May.

Steel & Tube, primarily a steel products distributor, bought Pipeline Supplies from Australian steelmaker OneSteel for $11.7 million.

"The company experienced strong demand for its goods and services from all regions, with the exception of the Auckland market, which remained flat."

Increased demand from the rural sector boosted the performance of the steel distribution and processing business, and a healthy residential building sector supported the company's roofing business.

Pre-tax earnings rose to $28.51 million for the year, from $25.39 million the previous year.



"The economic outlook is expected to remain steady with the potential for some downside due to an expected reduction in farm incomes, although an increase in consumer spending may offset this," Calavrias said.



Steel & Tube shares closed down 7c at $2.80.

- NZPA