The steel and manufacturing company Steel & Tube is back in the black after last year's hefty loss.
Photo: 123RF
The firm's net profit for the six months to December was $4.3m, compared with last year's $37m loss when the company was forced to write down the value of its assets.
Its bottom line has also been boosted by cost-cutting measures, including laying off staff in response to the pandemic early last year .
"The results of the significant efforts to deliver a turnaround in financial performance are starting to be seen, with sustainable cost reductions and a strong platform from which Steel & Tube can move forward," Steel & Tube chief executive Mark Malpass.
Revenue eased 2.4 percent to $226.3m because of the effects of Covid-19 hurting sales in the first quarter, before recovering in the second quarter when residential construction increased.
The performance of the company's distribution business outpaced its infrastructure arm, which eased slightly because of increased competition and tightening market conditions in parts of the construction sector.
Malpass said project work and contracts continue to be won and it had a solid pipeline of activity secured.
"Current indicators point to a stable economic outlook with strong residential and infrastructure performance, and an improving manufacturing sector, partially offset by constraints in non-residential construction and labour and international freight cost pressures."
On the back of the result, the company resumed dividends with an interim payment of 1.2 cents per share.
