Steel & Tube has reported a challenging start to the 2025 financial year, with weaker trading conditions impacting sales volumes and revenue.
The company said the deterioration in the New Zealand economic environment, which began in the latter half of the 2024 financial year, has continued.
It said demand for steel has reached recent lows and margin pressure has intensified.
As a result, revenue for the first four months of the financial year was down $41.6 million compared to the same period last year, totalling $141.7m.
The company also reported a normalised ebit loss of $5m.
Steel & Tube expects some improvement in the market from mid-2025, as interest rate cuts stimulate activity in the construction and manufacturing sectors.
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