Steel distributor Steel & Tube has signalled a one-off $5.2million gain will be added to its half-year bottom-line results in December, from the sale of a vacated Auckland property.
Steel & Tube (STU) said it had completed the move of its Auckland Coil Processing operations, from its Bowden Rd site to a purpose-built processing hub in Highbrook, selling Bowden Rd for $8.37million, resulting in a one-off gain of $5.2million which will be booked in its December, interim results.
STU shares were unchanged at $2.18 yesterday after the announcement.
STU's outlook delivered with its full-year to June result outlined challenges ahead for this trading half.
While expecting continued modest New Zealand growth, particularly from Auckland construction and key infrastructure projects, other important sectors for STU were expected to be "restrained''.
Deferred dairy investment would impact on business, not least the stainless steel division, which has seen solid growth in recent years ahead of carbon steel.
Its previous full-year result booked a 14% gain in revenue to $501.7million and after-tax profit gain of 20%, to $21.4million.
In July STU completed its second acquisition in a year, buying New Zealand fastener maker Manufacturing Suppliers for $32million.
In April 2014, STU paid $27.5million for Tata Steel International Australasia, a division of giant global steel supplier Tata Steel, of India.
Tata Steel International supplies stainless and engineering steels and composite floor decks in New Zealand, and also to Pacific Island markets.
