Steel profits drop $4m
Wellington-based Steel & Tube's after tax profit has fallen to $13.1 million for the June year, down from $17m last year as margins came under pressure.
Profits were squeezed reflecting low growth particularly for those products used in construction.
The company reported sales up 5 per cent in a "subdued but slowly improving market".
Revenues reached $405 million, an increase of $19.6 million.
The company said the key industry sectors important to Steel & Tube had shown little improvement in the year.
There was been a pick-up in Christchurch, but national steel demand has seen only a marginal increase year-on-year.
"This has resulted in a very competitive environment with significant pressure on margins, " the company said.
The second half of the year was slightly better than the first half to the end of December.
Revenue was steady in both halves, $202.9 and $202.5 million respectively.
Net profit after tax increased slightly in the second half to $6.7 million, giving a total of $13.1 million.
A final dividend of 6.5 cents a share was declared.
- © Fairfax NZ News
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