For its full-year to June result, sales increased 5%, or by $19.6 million to $405 million, and operating cash flows were up 35%, or $4.9 million, to $18.8 million.
However, chief executive Dave Taylor said Steel and Tube's sectors of construction, manufacturing and rural had seen minimal growth over the year and the 23% profit reduction reflected pressure on profit margins, particularly for those products aligned to construction.
"External factors to New Zealand are likely to continue to overshadow local issues and drive sentiment.
"On a positive note there are signs the rebuild in Christchurch is under way, albeit slowly," Mr Taylor said.
Steel and Tube shares were down just under 1% at $2.11 following the announcement. A final dividend of 6.5c per share took the total for the year to 12c, or $10.6 million.
Mr Taylor said New Zealand steel demand remained "suppressed" and the estimated use of 665,000 tonnes was "significantly down" on the 2005 peak of 970,00 tonnes - a 31% difference.
"Therefore, competition remains intense and continues to inhibit margins throughout the industry," he said.
Craigs Investment Partners broker Chris Timms said the global price of steel and the fluctuating New Zealand dollar remained as "major issues" to contend with.
While Steel and Tube maintained a balance sheet "in good shape", its reluctance to give any financial guidance underscored the cautionary stance it was taking on the economic outlook, he said.
Forsyth Barr broker Haley Van Leeuwen said it was unsurprising Steel and Tube had "reported on another tough year", given the underlying margin pressure and low growth in key sectors.
"The steel industry is currently facing excess capacity that will continue to put pressure on businesses.
"We have downgraded our full-year earnings before interest and tax for 2013 and 2014, with the view that consolidation of the industry is needed in order to represent current modest outlook for steel volumes," Ms Van Leeuwen said.
She noted Steel and Tube still paid shareholders an attractive 6.5c dividend, plus a supplementary dividend of 1.15c, equating to about an 8% gross yield.
Mr Taylor said the economic outlook was being led by the residential sector, infrastructure and preparatory activities for Christchurch's rebuilding. Similarly, Auckland's residential activity was picking up and oil and gas activities continued in Taranaki.
"However, demand and activity levels outside of these sectors are expected to remain subdued in the short to medium term," he said.
The lack of non-residential activity remained of concern and was likely to continue to challenge profit margins throughout the supply chain in that sector, he said.
