A 16 per cent gain in full-year profit was recently posted by Steel & Tube Holdings, which supplies steel products to the construction industry. This indicated strong trading in the first half, which dissipated as expected in the second six months of the year.

Via a statement, the Wellington-based company informed that in the 12 months ended June 30, net income rose to NZ$26.1 million, or 29.6 cents a share, from NZ$22.5 million, or 25.5 cents a year earlier.

The first half saw the demand for steel building products, when a global shortage forced up prices and permitted Steel & Tube to target higher-margin sales.

The company said: "Trading fell away in the second half, as a weak domestic economic sapped demand and squeezed margins, while weaker commodity prices dimmed sales in the rural sector. The slump in the second half looks set to endure."

According to acting chief executive Tony Candy, "The Company expects to see a continuation of the current soft volumes and resultant pressure on margins. There is some prospect of an improvement in 2010 if, as economic forecasters predict, the country emerges from recession and demand picks up."

Shares for Steel & Tube hiked 1.3 per cent to NZ$3.15. It should be noted that the shares have hiked 26 per cent, after hitting a low in late April.

A 4 percent decline in sales in the latest year was posted by the company's distribution business, which includes Steel Distribution, Stainless Steel, Fastening Systems, Piping Systems and Industrial Products.

The company said: "Manufacturing, which includes Roofing products, reinforcing and Fabrication and Hurricane Wire Products also had a 4 per cent sales drop."

It should be noted that a final dividend of 9 cents a share would be paid by Steel & Tube, lower from 10 cents a year earlier. The interim dividend had been hiked to 10 cents a share from 9 cents by the company, which kept its annual payments unchanged.