Listed steel maker and building products company Steel and Tube's full year profit has risen nearly 20 percent on the back of an asset sale, but says there are signs world steel prices are improving.
A file photo shows a construction worker selecting steel mesh for concrete reinforcement Photo: Cultura Creative
The company made a net after tax profit for the year ended June of $25.8 million compared with $21.5 million the year before.
However, the profit was boosted by a one gain of $6.4 million from the sale of a property, and without that the underlying profit was just above the forecast given by the company in May, when it warned of squeezed prices and margins because of tough competition.
Group revenue was up 3 percent to $516 million, boosted by two acquisitions last year.
However, Steel and Tube said it had also had been hit by extra costs because of the quality issues involving the certification of earthquake steel mesh.
Steel and Tube chief executive Dave Taylor said steel prices were at a 13-year low and intense competition made trading difficult, but there were signs of an improvement.
"While we remain in a challenging global steel environment, steel prices are firming both domestically and globally. When coupled with a relatively robust domestic economy, we are optimistic that we'll see a stronger performance from the business in our next trading year."