Steel profits drop $4m

JAMES WEIR
BUSINESS EDITOR
Last updated 10:13 10/08/2012
Steel & Tube
PROFIT SQUEEZE: Steel & Tube chief executive officer Dave Taylor.

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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.

Contact James Weir
Business editor
Email: james.weir@dompost.co.nz

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