Steel & Tube posted a 22 per cent drop in annual profit after the year-earlier earnings were boosted by a property sale. It reduced its dividend payment and said business performance hadn't met its expectations.
Net profit dropped to $20 million in the 12 months ended June 30, from $25.8 million a year earlier, as revenue slipped 1 per cent to $511.4 million, the Wellington-based company said in a statement. The year-earlier profit was boosted by a $6.3 million gain on the sale of the company's Bowden Road property in Auckland. It expects to provide an outlook on 2018 earnings at its annual meeting in November.
The company will pay a final dividend of 7 cents per share on Sept. 29, taking the total annual dividend to 16 cents. That's lower than the previous year's final dividend of 13.5 cents, which took the total payment in that year to 22.5 cents.
Steel & Tube, which manufactures and distributes steel building supplies, posted a 1.9 per cent gain in operating earnings to $31.1 million as it benefited from acquisitions, margin management and costs. Still, the company said earnings hadn't met its expectations due to a competitive environment, project delays and teething issues with its new plastics plant.
"It is less than our expectations and so we are a little bit disappointed by that," chief executive Dave Taylor told BusinessDesk.