Tuesday 22nd May 2018
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Steel & Tube Holdings shares have been halted from trading pending a board review of the steel products maker's financial performance, which the company expects will change earnings guidance.
The stock last traded at $1.98, valuing the company at $179.4 million, and has declined 5.7 percent so far this year. The Lower Hutt-based company had previously forecast annual earnings excluding non-trading costs would be in line with the $31.7 million reported in 2017.
"The halt is to allow for STU’s board to complete a review of the company's financial performance year to date and consider certain other factors that are likely to impact on earnings guidance previously provided to the market," it said in a statement. "An announcement regarding revised earnings guidance for the 2018 financial year is expected to be made prior to the NZX exchange opening on Wednesday 23 May 2018."
In February, Steel & Tube reported a 64 percent slide in first-half profit to $3.8 million after writing down old inventory by $5.5 million and recognising $2.6 million of restructuring costs. At the time, it signalled its change programme could lead to further earnings downgrades as the company goes through "significant change".
The firm's margins were squeezed in September and October last year as strong global demand for steel and reduced Chinese capacity pushed up prices, while at the same time an intensely competitive domestic market meant most firms were slow to pass on the cost to customers.
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