Steel & Tube has provided guidance for the first half of the 2023 financial year, stating that it is on track to deliver normalised earnings before interest and tax (EBIT) of $10 million to $11 million.
This is in line with the second half of the previous year.
The company attributed this to its customer focus, pricing disciplines, and progress with a $5 million cost management programme.
It has been able to offset inflation with efficiencies and has seen an improvement in gross margin dollars per tonne compared to the same period last year.
Steel & Tube also reported a strong financial position, with net cash of $17.1 million and a reduction in inventory.
CEO Mark Malpass said the company has remained resilient and focused on its strategy despite the challenging economic environment.
He expressed confidence in the company's ability to achieve strong earnings growth when volumes return to pre-pandemic levels.
The company sees long-term opportunities in areas such as construction, housing demand, and infrastructure projects.
Chair Susan Paterson praised the performance of the company's core business and its ability to take advantage of growth opportunities.
In addition to the guidance announcement, Steel & Tube released its December 2024 investor newsletter.
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