NZ's Steel and Tube H1 profit more than doubles

New Zealand's Steel & Tube Ltd. (STU.NZ) on Thursday reported a 143 percent rise in first-half net profit due to higher steel prices.
The company, half-owned by Australia's OneSteel Ltd. (OST.AX), made a net profit of NZ$20.8 million ($10.9 million) in the six months to Dec. 31, compared with NZ$8.6 million a year earlier.
Steel & Tube said it had benefited from strong global demand for steel products earlier in 2008, but demand had noticeably slowed towards the end of the year.
It said the outlook for 2009 was for a tough environment, which will substantially hit second half earnings.
It was untraded, but closed on Wednesday at NZ$2.95.
It declared an increased dividend of 10 cents a share from 9 cents a share last year.
In October last year Onesteel abandoned a NZ$175 million bid to buy the remainder of Steel and Tube's shares, saying market volatility had made the transaction too risky. ($1=NZ$1.91)