Recently listed steel products company Vulcan has reported a near doubling of its half-year profit on strong demand and sales.
Vulcan's sales volumes were up 10 percent. (file image) Photo: RNZ / Cole Eastham-Farrelly
Vulcan, which listed at the end of last year, reported an after-tax profit of $54 million for the six months ended December compared with $29.1m the year before, but included about $16m in costs associated with listing on the stock exchanges.
The company processes and distributes steel products to the building, minerals, and agricultural sectors on both sides of the Tasman.
"Notwithstanding Covid-19, our businesses have traded well in the first six months ... This strength has been broad-based across our Australasia Steel and Metals business units," the company said in a shareholders' report.
Sales volumes were up 10 percent, with revenue rising 35 percent to $463m, and its margin rising by 6 percentage points.
The company said it expected global steel demand to remain positive, despite uncertainty over production levels and possible pandemic-related disruptions.
It said rising interest rates might restrain economic activity and investment, but it maintained a positive medium-term outlook.
Accordingly, it raised its forecast full-year profit by 15 percent to between $107m-$114m.
Vulcan said it had raised its base pay rates because of rising living costs, and was also paying eligible staff a further support bonus to ease financial pressures.
It declared a maiden interim dividend of 27.5 cents a share.