Steel & Tube first half-year financial results

17 Feb 2017

For the half-year ended 31 December 2016

Revenue

$254 million, down 4 per cent from $266 million

Net profit after tax (NPAT)

$10.6 million, up 7 per cent on prior underlying earnings

Cash flow from operations

$14.0 million, up 49 per cent from $9.4 million

Net tangible assets per share

$1.49 cents per share, down from $1.58 per share

Interim dividend

9 cents per share

Comparisons are with the prior corresponding six month period ended 31 December 2015

Steel & Tube chief executive Dave Taylor said profit for the half was consistent with expectation.

“This is against a volatile global steel and intensely competitive domestic trading landscape.

Even though residential construction activity improved, non-residential construction by floor area dropped by 20 per cent during the year ending December 2016, contributing to domestic steel volumes remaining some 13 to 15 per cent below the peaks experienced in the 2004/5.

While Steel & Tube maintained its price leadership position, others favoured volumes over price management.”

“In terms of the performance of acquisitions, S&T Stainless and MSL are performing well, while S&T Plastics took the opportunity to prepare the plant and increase capabilities in advance of several contract commitments worth in excess of $27 million for calendar year 2017. This impacted profitability by $1.2 million after tax. Our newest addition to the Steel & Tube stable, Composite Floor Decks Limited (CFDL) which was acquired at the end of October had two strong trading months.”

“We continue to drive to modernise the business in terms of facilities, equipment, systems, and these activities are ongoing, ensuring we continue to deliver products most cost effectively and efficiently and with a continued focus on a united approach to customers. The first stage of the systems alignment has been completed, and that has enabled some costs to be removed, with more alignment to come over the coming years.

We expect the second half will be stronger than the first half reflecting the pricing opportunity. In addition, contracts recently awarded to S&T Plastics, the benefits of cost reductions and CFDL performance through the next six months will deliver improved earnings, said Mr Taylor.”

For further information please contact:

Tanya Katterns Communications Manager 04 570 5048

[ENDS]

 

Note for editors:

Steel & Tube is New Zealand’s leading provider of steel solutions and a proud New Zealand company with over 60 years of trading history in this country.
With a national network of branches and distribution centres, S&T engages in markets and projects across infrastructure, construction (commercial and residential), heavy and light engineering, energy, manufacturing, viticulture and rural sectors.

The company distributes and manufactures steel products – from nuts, bolts, nails, piping, roofing and farm fencing, to the largest structural steel products used in commercial construction, such as purlins, girts, joists, universal beams and seismic mesh.

S&T’s stable of best-in-class businesses are leading suppliers of stainless, engineering steel, fastenings, and irrigation products and services in the country.

They include S&T Stainless, Manufacturing Suppliers Ltd (MSL), S&T Plastics and Composite Floor Decks Limited (CFDL).
More information is available on S&T’s website: www.steelandtube.co.nz and www.stainless.steelandtube.co.nz 

 

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