Steel and Tube says trading has been difficult in the first four months of the new trading year, with a continuation of soft volumes and even greater pressure on margins.
The listed company, which is half owned by Australia's OneSteel, made $26.1 million in the year to June, with revenue falling and the rural and manufacturing sectors contracting.
The new chief executive, Dave Taylor, told about 100 shareholders at the annual meeting in Wellington on Thursday conditions remained fairly tough.
He said half year earnings were likely to be lower than in the same period a year ago.
Mr Taylor said the high New Zealand dollar would have a big impact on the business in the coming year, but there were good prospects on the horizon.