Steel & Tube profit up 198%
Underlying profit up 75% as manufacturer bounces back.
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Manufacturer Steel & Tube (NZX:STU) has tripled its full-year profit to $17.0 million, up 198% from $5.7 million last year.
The increase was inflated by last year's tax changes, with a one-off tax expense this year of $289k compared to last year's tax hit of $4.2 million.
Steel & Tube's underlying profit of $17.3 million is an increase of of 75%, up $7.4 million on the previous year.
Sales at $386 million were $6 million higher on slightly increased volumes.
A final dividend of 9.0 cents per share was declared.
Steel & Tube says despite the low demand environment it has maintained a steady market share position in its core products.
Strong competition saw margins impacted, although they recovered to some degree in the second half.
"Distribution, comprising steel, stainless steel, fastenings, piping systems, wire and industrial products, in aggregate had increased sales revenue of 1.5% on 3% more volume over the full year," the company says.
"Like the prior year, piping systems and stainless product groups performed relatively well, reflecting the completion of major projects in the oil and gas sector as well as internal initiatives starting to generate benefits.
"Processing, comprising roofing products, reinforcing, wire and mesh products had marginally increased sales revenue on a marginal increase in volume over the full year.
"Government infrastructure projects continued to generate much needed work.
"In Auckland several projects have continued including the Rail Electrification, the Newmarket Viaduct Replacement and a further phase of the Victoria Park Tunnel. In Christchurch, the Southern Motorway upgrade commenced and all continued to positively impact reinforcing activities."
Niko Kloeten
Thu, 11 Aug 2011
Thu, 11 Aug 2011
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Steel & Tube profit up 198%
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