World Steel Tube Editing Global economic uncertainty prevails for listed Steel & Tube, which begins a new era following major restructuring, a majority-shareholder $91 million share sell-off and re-entry to the New Zealand Stock Exchange's Top 50 list.
World Steel Tube The editor was informed At Steel & Tube's annual meeting in Wellington yesterday, chairman Sir John Anderson outlined how it still remained difficult to form a clear view of the trading landscape "even over the short-to-medium term".
World Steel Tube The editor was informed The sovereign-debt issues in Europe were continuing and in part contributing to the decline in China economic activity, which was reducing commodity prices in the Australian resources sector, Sir John told the annual meeting.
World Steel Tube The editor was informed Craigs Investment partner-broker Peter McIntyre said while sales were up and the company had a strong balance sheet and cash, the outlook relied heavily on issues in Europe and China.
World Steel Tube The editor was informed "Christchurch is not yet the windfall expected and [in all regions] outside Auckland, things are still tough," Mr McIntyre said.
World Steel Tube The editor was informed Australian-based Arrium, formally trading as OneSteel, sold its 50.3% majority shareholding in Steel & Tube on October 9 for $91 million.
World Steel Tube The editor was informed This sale subsequently allowed Steel & Tube to re-enter the stock exchange Top 50 list last week.
World Steel Tube The editor was informed Sir John said demand across all key sectors remained "subdued" and the momentum of the expected Christchurch rebuild was improving but continuing to experience delays.
World Steel Tube The editor was informed Steel demand was being restricted to levels "marginally above" the previous year, leading to an intensely competitive trading environment.
World Steel Tube The editor was informed While it was pleasing that in the previous financial year, sales had increased 5% to $405 million, profitability was down 23% at $13.1 million, primarily due to increased industry competitiveness, he said.