Despite less sales revenue, construction bellwether company Steel and Tube booked an almost 20% increase in after-tax profit, underpinned by impetus in Canterbury's rebuild.
Craigs Investment Partners broker Peter McIntyre said Steel and Tube's result for the full year to June was in line with guidance. Improved cash flow was a highlight.
''It was a positive performance signalling the recovery is well under way and will continue to improve into 2014,'' Mr McIntyre said.
Shares in Steel and Tube were up 2.3%, at $2.57 after the announcement. The final 8.5c dividend yesterday boosted the full year to 15c, up 3c on last year.
Forsyth Barr broker Haley Van Leeuwen said the earnings before interest and tax at $22.6 million, was ''on the back of a solid margin increase'' up from 4.9% a year ago to 5.7% in for 2013.
''Christchurch's residential and infrastructure activities underpinned revenue, but they're still waiting for significant commercial activity. There's no sign yet of a key anchor project,'' Ms Van Leeuwen said.
A reduction in steel prices resulted in a decline in sales from $405 million to $393 million on a year ago, while operating cash flow rose $8.7 million to $27.5 million, on the back of the cost of steel dropping. After-tax profit rose 19% from $13.1 million to $15.6 million.
Mr McIntyre said although revenue was down 3% on a year ago, and below Craigs' expectations due to the weaker steel price and flat volume, that decline was offset through profit margin improvements.
Earnings before interest and tax were up 70 basis points.
''The company's focus on supply-chain initiatives is clearly paying off, as seen in the margin expansion,'' he said.
A ''key highlight'' was the sharp improvement in operating cash flows, which were up $27.5 million on a year ago, although slower in second-half trading at $8.4 million, he said.
