Steel & Tube Holdings, the steel building products firm whose majority shareholder exited its holding last October, posted a 19% gain in full-year profit, meeting estimates, as costs fell more than sales.

The Lower Hutt-based company in a statement said that profit was USD 15.6 million, or 17.8% a share, in the 12 months ended June 30th from USD 13.1 million, or 14.9%, a year earlier. Sales fell to USD 393 million from USD 405 million. Profit of USD 15.3 million was expected, according to First NZ Capital.

It said that Steel & Tube is likely to be a key beneficiary of the rebuild of Christchurch and building activity in Auckland but the company reported mixed results across the country. Momentum in construction activity in Christchurch dissipated in the H2 compared to the first six months of the financial year half and with the exception of Auckland most other regions remained subdued.

Still, the lower activity was against a domestic backdrop of growing optimism” and overall the second-half performance eclipsed the H1.

Steel & Tube doesn’t release the notes to its results until it publishes its annual report and executives weren’t immediately available to explain a 4.5% decline in cost of sales to USD 309.5 million. It held most other expenses unchanged from 2012 levels.

Source - BusinessDesk