A fall of 78% has been witnessed by Steel & Tube Holdings in one of the most difficult trading years in its long history. It is the largest distributor of steel and allied products in New Zealand. In the wake of its earnings report, its share price reported a drop of 3.6% to $2.14.

It reported a $5.7 million tax paid profit for the year up to June, which is lower from $26.1 million last year. The profit included a one-off charge of $4.2m pertaining to the elimination of depreciation on buildings for tax purposes.

Chief Executive Dave Taylor said that in the history of Steel & Tube's this financial year has been one of the most difficult trading years.

He said, "Despite this and a poor first half result, initiatives employed by the Company to manage through these tough times generated an improved second half result".

Though, in the later half of 2009 as well as early this year, the New Zealand economy managed to recover a bit. Mr. Taylor shared that no major flow-on has been witnessed in industries important to Steel & Tube.

Due to fragile property markets and property development sector, the construction industry was badly affected.