STU - Steel & Tube Holdings

**Mista_Trix** · 18-07-2016, 10:07 AM

"John Key downplays retaliation suggestions over potential China steel import sanctions"
http://www.stuff.co.nz/national/poli...port-sanctions

**macduffy** · 20-07-2016, 02:34 PM

Originally Posted by Lewylewylewy

There's some truth in that. Whenever a share gets pumped, I always ask myself if it's something they can recover from. Hopefully STU haven't lost customers to long term contracts with competitors or given potential competitors the opportunity to get in. I don't know the answer to this, but I may take a punt later in the month

STU's shareprice continuing its cautious recovery to/over $2. Trade at $2.03 today.

**Mista_Trix** · 22-07-2016, 01:34 PM

"NZ steel bid 'courageous', says US steel workers' union"
http://www.stuff.co.nz/business/8237...-kiwi-industry

Such an interesting battle underway.
Especially given the amount of steel that does seem substandard (when actually tested by NZ regs - not dodgy certificates from abroad) which has come in via China - this can only help strengthen the long term position of companies like STU.

SP well up - $2.20 at posting.

**blackcap** · 12-08-2016, 09:07 AM

Wonder if the increased profit, record sales revenue and huge dividend (in light of recent OCR action), and positive guidance for the future will have any impact on the SP today?

Steel & Tube Holdings Limited 2016 Annual Results
8:34am, 12 Aug 2016 | FLLYR
August 12 2016

Steel & Tube’s revenue a new high

Full-Year results and dividend
Steel & Tube’s revenue improved three per cent to a record $516 million. Net operating cash flow also increased to $25.1 million and is up on the 2015 result.

Net profit after tax for the year improved by 20.5 per cent to $25.8 million, reflecting a previously reported $6.4 million tax affected gain on sale from the Bowden Road property in Auckland. Underlying profit is $19.4 million and is higher than the range given in the guidance in May.

This was achieved in a particularly challenging environment with global steel prices at 13-year lows at the year’s midpoint, ongoing price volatility and intense competition in the domestic steel market, says chief executive Dave Taylor. The second half results include a one-off cost impact in relation to product quality issues.

The final dividend for the year is a pleasingly 13.5 cents per share.

Building on strong foundations
The continued execution of the company strategy through the financial year has positioned Steel & Tube well, creating strong foundations as shown by the year’s performance in-spite of the challenges of low global steel prices and questions around some product quality, says Mr Taylor.

“Despite the headwinds we’ve experienced and particularly in the second half of the year, our results demonstrate our resilience and ability to continue delivering sustainable value.”

The recent acquisitions of Manufacturing Suppliers Ltd (MSL) and Aquaduct with its sister company Bosch Irrigation bring new capabilities as we continue to deliver on our strategic objectives, he says.

“These acquisitions along with the strong foundations already within the business continue to position Steel & Tube for ongoing growth momentum in our key markets.”

Mr Taylor is confident about Steel & Tube’s future. “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.”

[Ends]
For further information contact Tanya Katterns, Steel & Tube Communications Manager:
04 570 5048 tanya.katterns@steelandtube.co.nz.

Attachments
Appendix 1
Appendix 1 attachment - 30 June 2016 Financial Statements
Appendix 7
2016 S&T Year End Results

**macduffy** · 12-08-2016, 01:33 PM

Yes, blackcap, the market liked what it heard from STU today and marked the SP up 5% - so far. Although most of the increased profit came from a property sale, it seems that the confidence of a stronger performance next year has been well received.

**thedrunkfish** · 12-08-2016, 05:36 PM

I thought it was all doom and gloom though? Bad media reports, dodgy steel etc.

**blackcap** · 12-08-2016, 05:39 PM

Originally Posted by thedrunkfish

I thought it was all doom and gloom though? Bad media reports, dodgy steel etc.

Looking good isn't it with a 22.5c imputed dividend for the year... and the SP is under a 10% net yield with the outlook looking good. Time to top up at these prices I think.