Steel and Tube reports profit, but expects tough year

STEEL and Tube, a New Zealand steel products manufacturer says its full year profit was 16%, but expects a tougher 2009 to 2010 year.

Steel and Tube had a net profit after tax for the year to 30 June 2009 at NZ$26.1m ($21.02m). In the previous financial year, the profit was NZ$22.5m ($18.12m).

Steel and Tube says it expects the business volatility to continue into the first half of the 2010 financial year. While it had a strong first half year, the global slowdown impacted on earnings from January to June 2009.

OneSteel owns 50% of Steel and Tube. It had intended to buy out the rest of the company, but abandoned the bid in October 2008 due to the economic crisis.