Steel & Tube Explores Acquisitions Amid Declining Steel Demand

Steel & Tube Holdings Limited (NZX: STU) is considering further acquisitions despite steel demand dropping to its lowest levels since the 1990s. The company reported a $10.39 million loss for the six months ending December 31, compared to a $5.3 million profit a year earlier. Revenue declined 25% to $196 million, while normalised earnings before interest and tax (EBIT) fell 184% year-on-year to -$9.5 million. However, with net cash of $17.5 million and access to a $100 million bank facility, Steel & Tube remains financially positioned to pursue strategic growth. CEO Mark Malpass highlighted the company’s resilience and investment potential, indicating that targeted acquisitions could strengthen its market presence despite ongoing industry challenges.

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