Steel & Tube Ltd made a $3.2 million profit in the six months to December - down 85% on the same time a year earlier.
The listed company, which is half owned by OneSteel, says it experienced soft trading conditions, as the effects of the global financial crisis continued to be felt.
The company says strong competition for reduced volumes and declining steel prices also squeezed margins.
Revenue fell 30% to $190 million.
The company says market conditions are expected to remain difficult in the short-term, but should improve as the year progresses.
