Steel & Tube announces solid profit

Steel & Tube announces solid profit

New Zealand based Steel & Tube Holdings Limited reported that its 2004/05 fiscal year net profit increased 27% year on year to $36 million. The sales of the company increased 12.9 percent to $437.98 million, despite a tumultuous year in the steel industry. The company attributes the growth in sales to high demand from the commercial construction sector. Energy and infrastructure projects helped the Piping Systems business to post improved results. However, company sales were impacted by a decline in demand from the manufacturing and agriculture industries. Taking the above factors into consideration, and providing that there is no significant change to the economy or further volatility in international steel prices, the company expects to post another solid result next year. Speaking at the annual general meeting, company CEO Nick Calavrias indicated, “Revenue growth during the year was mainly attributable to increases in steel prices brought about by the substantial rises in input costs for steelmakers and a period of steel supply shortages as demand leapt ahead of manufacturing capabilities due to global steel demand.”