7 Jul 2017

Steel & Tube shares fall

4:21 pm on 7 July 2017

Shares in Steel & Tube have fallen sharply after it warned its full-year earnings have been hit by competition, delays and shrinking margins.

The company expects its operating earnings to be down between 10 and 15 percent on a year ago.

That would put it somewhere in a range of between $26 million and $27.5m and compares with its previous forecast of roughly matching last year's $30m.

Chief executive Dave Taylor said the last few weeks of the trading year proved to be tougher than expected.

"We have faced multiple construction and infrastructure project challenges and delays which have been out of our control, coupled with intense competition in the market leading to tighter margins particularly in the construction sector," he said.

In mid-afternoon trading, the company's shares were down more than 6 percent, or 17 cents, to $2.46 each.

It adds to the woes for the steel company, in February, the company's half-year results were weaker, but in-line with expectations.

Last month, the Commerce Commission laid 29 charges against the steel company for making false and misleading representations about its steel mesh.

The company confirmed in December that it was one of three companies who were facing criminal charges from the commission after an investigation into sub-standard steel mesh.

Get the RNZ app

for ad-free news and current affairs