Vulcan Steel posted another big drop in full-year profit amid tough conditions in the building sector. Photo: RNZ / Cole Eastham-Farrelly
Steel products company Vulcan Steel posted another big drop in full-year profit amid tough conditions in the building sector.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $40m vs $87.9m
- Revenue $1.06b vs $1.24b
- Underlying earnings (EBITDA) $147.6m vs $218.9m
- Final dividend 12 cents per share vs 30.5 cps
The company's profit more than halved on the back of a 15 percent drop in revenue.
Chief executive Rhys Jones said business conditions remained challenging in both Australia and New Zealand.
"Higher interest rates continued to impact on activity levels. High inflation added to the pressure on business costs."
However Jones was pleased with a 16 percent increase in operating cash flow, helping drive a $64 million drop in net debt from a year ago.
Vulcan Steel said the Reserve Bank's recent decision to cut interest rates should "hopefully provide relief for the economy" and expected activity to improve in 2025.
The company also expected Australia's tough monetary policy conditions to weigh on activity across the Tasman.
"In the interim, our trading activity in 1HFY25 (first half of 2025) in Australia and New Zealand is expected to remain at low levels, similar to 2HFY24 (second half of 2024)," Vulcan said.
The company intended to provide guidance at its annual shareholders meeting in November.