12 Feb 2011

Sales and cost cutting help Steel and Tube double profit

5:32 am on 12 February 2011

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.