Steel and Tube net falls 26 per cent

Press, 11 June 1980, Page 18

Steel and Tube net falls 26 per cent

Steel and Tube Holdings, Ltd, suffered a 26 per cent drop in audited group net , profit in the year ended March 31. Earnings fell from $5.3M last year to $3.9M, the directors say in a preliminary report. The result was after providing $210,000 more for depreciation at $l-.6M, and SI.BM less for tax at $2.4M, and includes realised capital profits of $602,000. (Last year there was an extra-: ordinary loss of $9000.) Sales rose 7.6 per cent to SI2SM; -export sales were maintained at S2M. Profits in the second half were substantially lower than predicted being affected by the loss of substantial.

, engineering revenue through : the Kinleith strike, lower . than expected results at the Huntly Power Station Project, reduced margins in other contracting activities, and the consequences .of technical problems arising from the supply of tube to the refrigeration industry. Merchandising sales, which represent about 70 per cent of turnover, were well maintained without margins suffering. The directors recommend an unchanged final dividend of 5c a share (10 per cent) payable on capital enlarged, by the recent cash issue of one for 10. It will be taxfree, and paid on July 30, ex July 17.