Steel & Tube says underlying profit was in line with expectations.
Photo: RNZ / Nate McKinnon
Steel manufacturer and distributor Steel & Tube says its full year result reflects weak economic conditions, but is poised to take advantage of the rebound.
The company’s full year net profit for the year ended June fell 85 percent to $2.6 million, with revenue down 19 percent to $479.1m.
However, underlying profit was in line with expectations at $14.5m, reflecting a 21 percent drop in volumes.
“While the timing and pace of an economic recovery remains unclear, our expectation is that conditions should start to improve in the 2025 calendar year,” chief executive Mark Malpass said.
“We are navigating a challenging trading environment, but we are well positioned for demand growth when it returns.”
Malpass said the company had maintained a strong market share, while cutting costs by $5m.
“We have a loyal customer base and we have quality inventory, meaning we can provide the products and solutions we know our customers will need when their projects start up again.”
Malpass said the outlook was positive with a government budget of $68 billion for infrastructure work over the next five years, which will improve Infrastructure activity in the medium term.
Chair of Steel & Tube Susan Paterson said the company was in a position to pay a full year dividend of 6 cents per share.
“With good cash reserves and no borrowings, our strong balance sheet provides resilience in difficult times, the ability to continue to pay dividends to shareholders and the opportunity to grow through organic and M&A investments,” she said.