Auckland headquartered New Zealand’s Steel & Tube has reported record results for the 12 months ended 30 June 2022, with profit almost double that of the prior year, as the company moves its focus to growth. Steel & Tube Chief Executive Officer Mr Mark Malpass said “Our priority is to make it easy for our customers to transact with us and I would like to acknowledge our people, who have done an outstanding job of doing just that. Despite the volatile steel pricing environment, rising costs and continuing supply chain disruption, we have been able to source, supply and deliver products to our customers in a timely manner. We are seeing the benefits of our focus on operational excellence and supply chain management which has allowed us to control costs and deliver improved performance in a more challenging environment. A continued investment in digital technology is delivering improved customer service and efficiency. We will continue to build on our core strengths and are excited about the growth opportunities we are investing in.”FY 2022Sales – 0.167 million tonnes, up 6% YoYRevenue – NZD 599 million, up 25 YoYEBITDA - NZD 67 million, up 73% YoYProfit - NZD 30 million, up 96% YoYMr Malpass said “While global and local economies traverse an inflationary environment, there will still be strong demand for steel. Pricing is expected to remain at current elevated levels for the balance of the calendar year. As shipping and supply chain congestion eases, inventory cover levels are expected to reduce. Steel & Tube’s journey has taken us from a relentless focus on cost and operational discipline under Project Strive, to now having the foundation and ability to focus on growth and building a more diversified, resilient business. Our two primary strategic pathways are continuing to strengthen our core and investing in high value products, services and sectors to drive gross margin improvement. One such opportunity is in added value plate processing where we have invested into new equipment to expand our plate processing capability and offer. Another example is our Fasteners NZ purchase in July 2021, a niche operator that has performed extremely well in FY22. More recently, on 1 August we acquired Kiwi Pipe and Fittings, in line with our strategy to invest in high value sectors, and which provides us with scale and market share growth in the fire and water reticulation sector. This acquisition was immediately earnings positive and expected to add over 0.5 cents to earnings per share in FY23.”Steel & Tube is a diversified steel processor & distributor of steel across New Zealand since 1953.
Auckland headquartered New Zealand’s Steel & Tube has reported record results for the 12 months ended 30 June 2022, with profit almost double that of the prior year, as the company moves its focus to growth. Steel & Tube Chief Executive Officer Mr Mark Malpass said “Our priority is to make it easy for our customers to transact with us and I would like to acknowledge our people, who have done an outstanding job of doing just that. Despite the volatile steel pricing environment, rising costs and continuing supply chain disruption, we have been able to source, supply and deliver products to our customers in a timely manner. We are seeing the benefits of our focus on operational excellence and supply chain management which has allowed us to control costs and deliver improved performance in a more challenging environment. A continued investment in digital technology is delivering improved customer service and efficiency. We will continue to build on our core strengths and are excited about the growth opportunities we are investing in.”FY 2022Sales – 0.167 million tonnes, up 6% YoYRevenue – NZD 599 million, up 25 YoYEBITDA - NZD 67 million, up 73% YoYProfit - NZD 30 million, up 96% YoYMr Malpass said “While global and local economies traverse an inflationary environment, there will still be strong demand for steel. Pricing is expected to remain at current elevated levels for the balance of the calendar year. As shipping and supply chain congestion eases, inventory cover levels are expected to reduce. Steel & Tube’s journey has taken us from a relentless focus on cost and operational discipline under Project Strive, to now having the foundation and ability to focus on growth and building a more diversified, resilient business. Our two primary strategic pathways are continuing to strengthen our core and investing in high value products, services and sectors to drive gross margin improvement. One such opportunity is in added value plate processing where we have invested into new equipment to expand our plate processing capability and offer. Another example is our Fasteners NZ purchase in July 2021, a niche operator that has performed extremely well in FY22. More recently, on 1 August we acquired Kiwi Pipe and Fittings, in line with our strategy to invest in high value sectors, and which provides us with scale and market share growth in the fire and water reticulation sector. This acquisition was immediately earnings positive and expected to add over 0.5 cents to earnings per share in FY23.”Steel & Tube is a diversified steel processor & distributor of steel across New Zealand since 1953.
