Ann: HALFYR: STU: Steel & Tube Holdings Limited 2016 Half Year Results

• Release Date: 18/02/16 08:31
• Summary: HALFYR: STU: Steel & Tube Holdings Limited 2016 Half Year Results
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					STU
18/02/2016 08:31
HALFYR
PRICE SENSITIVE
REL: 0831 HRS Steel & Tube Holdings Limited

HALFYR: STU: Steel & Tube Holdings Limited 2016 Half Year Results

February 18, 2016

Acquisitions support Steel & Tube's first half-year results

Key financial results

For the six-month period ending 31 December 2015:
o Revenue increased by $7.5 million to $266 million, a record half -year
result for Steel & Tube.
o Net profit after tax was $15.9 million, including a $6 million one-off gain
from the sale of property.
o The underlying trading result was a net profit after tax of $9.9 million.
o Net operating cash flow remained strong at $9.4 million.
o Net assets per share increased to $1.59, compared with $1.58 at 31 December
2014.
o An interim dividend of 9.0 cents per share was declared and will be paid on
31 March 2016.

Steel & Tube's ongoing operational and productivity improvements, combined
with earnings from the acquisition of MSL and Aquaduct/Bosch Irrigation,
boosted the company's half-year results. However, these gains were offset by
the continuing decline in steel prices.

"Global steel prices have now fallen by 30 per cent, reaching lows not seen
since 2003," says Dave Taylor, Steel & Tube's Chief Executive Officer. "This
has created an intensely competitive domestic steel environment, yet it is
pleasing to see our company initiatives almost fully compensate for the
impact of this decline."

He says that upgraded plant and facilities continue to improve productivity
and enhance customer service, while acquisitions extend Steel & Tube's
capability and position it as the market leader in several new product
categories.

This investment continued throughout the half-year and the business achieved
several key milestones, including:
o commissioning of the new Auckland reinforcing and wire processing facility,
which was officially opened by the Prime Minister, John Key.
o commissioning a new coil and purlins processing facility in Auckland,
o acquisition of MSL and Fortress Fastenings,
o acquisition of Aquaduct and Bosch Irrigation.

Although net profit after tax for the half-year was $15.9 million, an
increase of 47 per cent compared with the same period last year, this figure
includes a $6 million gain from the sale of property. The underlying profit
after tax was therefore $9.9 million, a reduction of 8.3 per cent compared
with last year. This result is consistent with our previous guidance.

Domestically, demand for steel and steel-related products remained moderate,
with demand from the construction and related sectors continuing to
strengthen and support the business's overall results.

"While we remain in a challenging global steel environment, there are
indications that the decrease in steel prices may be slowing. When coupled
with a reasonably robust domestic economy, I'm optimistic that we'll see a
stronger performance from the business in the second half of the year, such
that the underlying performance will be comparable with 2015" says Mr Taylor.

[ends]

For further information, please contact Dave Taylor on 04 570 5001.

Note for editors:

Steel & Tube is New Zealand's leading supplier and distributor of steel
products and services. We import, distribute and manufacture around 58,000
steel products - from nuts, bolts, nails, piping, roofing, seismic mesh and
farm fencing, to the largest structural steel products used in commercial
construction, such as purlins, girts, joists and universal beams. From our
head office in Petone, we support a network of 56 processing and distribution
facilities in locations across the country. Our key industry sectors include
commercial and residential construction, manufacturing, heavy and light
engineering, energy, viticulture and rural.
End CA:00277829 For:STU    Type:HALFYR     Time:2016-02-18 08:31:13