Steel & Tube Holdings, the building products firm whose majority shareholder exited its holding in October, posted a 14 percent gain in first-half profit and expects second-half results to exceed those in the first six months of the year.
Profit rose to $7.29 million, or 8.3 cents a share, in the six months ended December 31, from $6.37 million, or 7.2 cents a year earlier, the Wellington-based company says in a statement. Sales fell 1.6 percent to $199.6 million.
The shares rose 1.2 percent to $2.57 and have more than recovered from their slump in October, when Australia's Arrium sold its 50.3 percent stake. The company says there are signs of improving demand in the New Zealand market, helped by the rebuild of Christchurch, though manufacturing activity was "suppressed" during the first half.
"Domestic sentiment appears to be strengthening, aided by a reasonable December quarter, increasing construction activity centred predominantly around Christchurch and improving house prices," it says. "Overall, we expect the results of the second half of the year to be ahead of the first six months."
Steel & Tube will pay an interim dividend of 6.5 cents a share on March 28 with a record date of March 15, up from 5.5 cents a year earlier.
Sales missed the $209 million forecast of Forsyth Barr analyst Rob Mercer, though reported profit before one-time items beat his estimate of $6.9 million.
The company says while sales fell, it widened its margins "due to close management of market pricing".
It says the receivership of Mainzeal Property and Construction had no material impact on the company.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- While you were sleeping: Trump budget relief
- Series: Business leaders’ Budget 2017 wish lists – Andy Hamilton
- MARKET CLOSE: NZ stocks slip as Manchester concert attack drags on investor sentiment, Comvita drops
- Ebos to buy Australia's HPS for $A154m, expanding pharmacy footprint
- Editor's Insight: Books are now festival fare for the Woodstock generation
Most listened to
- Business leaders on Budget 2017: One of Andy Hamilton’s ‘very contentious’ Budget wishes is for greater regulation of ‘pockets of our economy’
- Serko’s Darrin Grafton says the company can use its SME platform to expand globally
- Trump travels overseas selling jobs as North Korea continues to lash out, on Trump’s Beltway with Nathan Smith
- Nick Shewring says co-working attracts "awesome people doing cool things"
- NBR Radio: best of the week ended May 19, with Grant Walker