Flat revenue for Steel and Tube was offset by a massive boost to after-tax profit - up 165% to $8.4 million - on the back of in-house cost-cutting and efficiencies.
For its first half-year trading to December, Steel and Tube's sales almost matched the same turnover as the year before at $190.5 million. Increased manufacturing volumes were offset by lower global steel prices.
Chief executive Dave Taylor said so far the economic recovery had been slower than expected, primarily due to lower household expenditure as many remain cautious about the outlook.
"The GDP data for the September quarter released in December was disappointing, with both manufacturing and construction declining," he said in a statement.
He said there remained strong competition in the sector and, despite increasing prices from the previous six months, prices remained below those of the same period a year ago.
A fully imputed dividend of 6c will be paid for the half, totalling $5.3 million to shareholders.
Steel and Tube shares were up almost 5% at $2.38 after the announcement.
Craigs Investment Partners broker Peter McIntyre, who had forecast Steel and Tube's profit would be up by at least 124% to $7.1 million, said the result reflected hard work by management and staff.
"They have a strong internal management programme well under way which is giving them greater efficiencies in several areas," he said.
During the period, Steel and Tube had rationalised a further seven business operations into existing facilities as part of a new "one company" operating model, and continued to scrutinise costs, debtors and inventory management.
Mr Taylor predicted work ahead in the residential and non-residential sectors, with the exception of infrastructure, would remain "soft". While there were indications the cost of rebuilding Christchurch could be higher than estimated, the work would take longer.
