Sharechat Logo

Steel & Tube in trading halt pending earnings guidance

Tuesday 22nd May 2018

Text too small?

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. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises against Aussie, Chinese yuan
Geothermal production drives record Eastland earnings, payout
RBNZ to announce final decision on bank capital rules by November
Licensing key to medicinal cannabis firm Cannasouth's ambitions
PwC says NZ banks would effectively hold 27.1% equity if RBNZ proposals are adopted
Terra Vitae says poor harvest to hit sales, earnings
Weak services sector growth raises concerns about NZ economic slowdown
National sticks to bob-each-way on US-China relations in new policy paper
Kiwi Property lifts annual profit 15% as valuations rise
Kiwi Property lifts annual profit 15% as valuations rise

IRG See IRG research reports