STU
14/11/2014 13:01
FORECAST
REL: 1301 HRS Steel & Tube Holdings Limited
FORECAST: STU: 2014 Annual Meeting - Media Release
November 14 2014
Steel & Tube aims for $500m revenue
Steel & Tube's revenue forecast is on track to hit $500 million this year,
says CEO Dave Taylor.
At today's AGM, Mr Taylor told shareholders the company was in good shape
with net profit up, an expanded customer base and a $30m investment programme
set to further boost productivity.
Its acquisition in April this year of the company now trading as S&T
Stainless positions Steel & Tube as New Zealand's leading stainless and
engineering steels business, with exclusive distribution rights to several
key product lines.
The company enjoyed a strong year, and continues to deliver solid
year-on-year improvements. It posted a net profit of $17.9m for the year to
June 2014 - up almost 15 per cent on 2013. Revenue for the same period was up
from $393m in 2013 to $441m - $13m of which came from S&T Stainless.
Mr Taylor told shareholders: "Our new entity offers opportunity for both
companies to grow faster together, with an ability to create value through
new and innovative customer solutions."
The acquisition has seen the company's geographic reach expand to include 48
facilities across New Zealand, with three new purpose-built plants - one in
Palmerston North and two under development in Auckland.
"These will enhance our processing capability and efficiency and better
service the expanding North Island building and construction requirements
whilst underpinning our business with the manufacturing sector," said Mr
Taylor.
The One Company reinvigoration programme, launched in 2011, has created
opportunities for Steel & Tube to contribute to some of New Zealand's biggest
infrastructure projects.
"These include the National War Memorial Park in Wellington, the Waterview
Connect project in Auckland, the Hamilton Avantidrome, Burwood Hospital in
Christchurch and the Len Lye centre in New Plymouth."
This year, the company celebrated 60 years since its inception in 1954. Mr
Taylor said it is "a remarkable achievement and testament to our ability to
adapt to changing market needs."
Looking ahead Mr Taylor said competition within the industry remained
intense, with over-capacity continuing to restrain margins. Against a
backdrop of softening raw material and finished steel prices, pricing had
remained subdued. However, the depreciating dollar means imported product is
more expensive which will need to be recovered.
"As a consequence, we expect the first half of this year will reflect six
months of S&T Stainless trading and a more buoyant market than the comparable
period last year."
[Ends]
For further information: Diane Robinson, Steel & Tube Communications Manager:
027 569 1919
End CA:00257689 For:STU Type:FORECAST Time:2014-11-14 13:01:25
