Steel & Tube lifts interim profit by 22 percent

By NZPA

Monday 17th February 2003

Steel products distributor Steel & Tube Holdings has announced a half year profit of $10.95 million, up 22 percent on the same period a year ago.

The company also announced a fully imputed dividend of 11c per share for the first half ending December 31 last year.

Operating revenue of $161.3 million was lower than the previous period's of $177.8 million but the operating profit before tax and unusual items was higher at $16.8 million compared with $13.2 million.

The company also said that to date, it had not bought any shares under its buy-back programme announced last October.

The programme, which extends to September 23 this year, had attracted limited volumes, and there were "procedural safeguards adopted by the board in respect of when and in what circumstances shares can be purchased".

Steel & Tube said its New Zealand operating re venue actually increased by $12.7 million, but the previous corresponding period had been boosted by $29.2 million from the sale of its Canadian business, A J Forsyth & Co, in October 2001.

Chief executive Nick Calavrias said the company had benefited from strong demand for Steel & Tube's goods and services, buoyed by consumer spending and the strong residential construction market.

While the commercial construction sector had been flat, the firm's reinforcing operations aided by a better mix of projects was able to increase its earnings, he said.

Looking ahead, Steel & Tube did not expect "any significant change in the overall trading environment" and was looking for a similar result in the second half of the year.

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