13 Aug 2012

Steel company profit down

1:00 pm on 13 August 2012

Full-year profit for Steel & Tube Holdings fell $4 million due to subdued construction activity and volatile steel prices.

Group profit after tax for the year to June was $13.1 million, down from $17 million the previous year.

The company says its key sectors, construction, manufacturing and rural, all experienced minimal growth over the year.

While demand is weak, chief executive Dave Taylor says it is slowly improving and sales increased by 5% to $405 million.

But the sales volumes did not translate to the price of steel, which he says has been challenging and is being accentuated by the variation in the New Zealand dollar.

Steel & Tube's share price fell 2c to $2.11 on Friday.