STU
15/08/2014 08:30
FLLYR
REL: 0830 HRS Steel & Tube Holdings Limited
FLLYR: STU: Steel & Tube Holdings Limited 2014 Annual Results
August 15 2014
Acquisition lends strength to Steel & Tube results
Key financial results
- The trading result for the full year to 30 June 2014 is a profit after tax
of $17.9 million, compared with $15.6 million for the previous year. An
increase of 14.7 per cent
- Revenue increased to $441.4 million and includes $12.9 million from
Stainless (Tata Steel International (Australasia) Ltd), representing a 12.2
per cent increase, compared with $393.3 million for the previous year
- Operating cashflow: $12.3 million
- Net borrowings increased to $58.7 million, reflecting the Stainless
acquisition and the increase in inventory and debtors associated with
increased revenue
- A final dividend of 9 cents per share was declared on 14 August 2014.
Steel & Tube CEO Dave Taylor says the company enjoyed a strong year, with
improved top-line performance increasing bottom-line results. "The
acquisition of the Tata Steel (Australasia) business in April 2014 - since
rebranded to S&T Stainless - strengthens our position as the leading
stainless supplier within New Zealand, with exclusive distribution rights to
several key product lines."
Mr Taylor says the Stainless operation is going well and performing in line
with expectations.
The company continues to reinvest for growth. Two new facilities are
currently being built in Auckland, with new plant and machinery that will
further enhance processing capability and efficiency. Another purpose-built
facility in Palmerston North is set to begin operating in the final quarter
of 2014. Key ICT projects, aimed at enhancing customer interactions and
service are also underway.
From a wider industry perspective, he says, "Economic activity, and
consequently volumes, improved across most sectors although competition
remains intense, restraining margins".
Mr Taylor welcomes the Government's continuing commitment to infrastructure,
noting that S&T is currently participating in some of the country's most
iconic building projects, including Auckland's Waterview Connection,
Wellington's National War Memorial Park and underpass and Burwood Hospital in
Christchurch.
Globally, he says, the steel industry remains challenged: over-capacity is a
continuing issue alongside increasing geopolitical risks and reducing
economic forecasts across several regions.
Mr Taylor is confident about Steel & Tube's future. "We expect that the
economic activity levels across the sectors we serve will continue to
increase and the S&T business will continue to deliver improving results."
Ends
For further information contact Diane Robinson, Steel & Tube Communications
Manager:
04 570 3290 or 027 569 1919
End CA:00253893 For:STU Type:FLLYR Time:2014-08-15 08:30:49
