Steel & Tube says volatile steel prices will present a challenge for the business in the year ahead.
The company more than doubled its half year profit to $8.4 million in the last six months of 2010 as it boosted sales and cut costs.
Revenue remained flat at $190 million as lower steel prices offset more sales.
However, chief executive Dave Taylor says global steel prices look set to rise, which combined with a fluctuating New Zealand dollar will likely mean higher local prices.
Shares in Steel and Tube rose 12 cents, or more than 5% on Thursday to $2.39.