Vulcan Steel result drives share price plummet

The S&P/NZX 50 index was flat today at 12,074.47. Turnover was $125.2 million.

Vulcan told the market the decline in profitability of its businesses – excluding aluminium – reflected a 15% drop in sales volumes, increased cost pressures and high financing charges.

The steel and metal distributor now expects earnings before interest, tax, depreciation and amortisation (Ebitda) to range between $215m and $230m – previously the top of the range was $235m – and net profit to be between $95m and $109m, up from $93m to $107m previously.

Devon Funds head of retail Greg Smith said Vulcan’s earnings were a “pretty poor result”.